KATV Channel 7 - The Spirit of Arkansas: Settlements Reached with Drug Companies

LITTLE ROCK – Attorney General Dustin McDaniel today announced that Arkansas, other states and the federal government have reached settlements with two pharmaceutical manufacturers over allegations that the companies unlawfully marketed prescription drugs.

 

The illegal marketing by companies Novo Nordisk Inc. and UCB Inc. resulted in false claims being filed to the state's Medicaid program, according to the federal government and the states.

 

Novo Nordisk is alleged to have engaged in off-label marketing of the drug Novo Seven Coagulation Factor VIIa. Arkansas's Medicaid program will receive $9,577.41 as a result of that settlement. UCB is alleged to have employed off-label marketing and kickback schemes to promote the sale of anti-epilepsy drug Keppra. The state received $53,441.71 for its Medicaid program in that settlement.

 

"It's my responsibility as Attorney General to protect the integrity of our Medicaid program, for the benefit of Arkansas taxpayers and those eligible for this vital healthcare service," McDaniel said. "Our Medicaid Fraud Control Unit investigates these types of activity and works to prevent these actions. I'm pleased that the states and federal government joined to reach these settlements."

 

Novo Nordisk will pay the federal government and the states a total of $25 million to resolve the false claims incurred against Medicaid for unlawful marketing of NovoSeven. Though the drug is approved only to treat specific bleeding disorders, Novo Nordisk is alleged to have knowingly promoted the drug to treat severe bleeding in trauma patients, outside its approved use.

 

UCB will pay the federal government and the states approximately $25.7 million to resolve the false claims related to marketing Keppra. From Jan. 1, 2003, to March 31, 2005, UCB is alleged to have promoted the sale and use of Keppra as a safe and effective method to treat headaches, anxiety and some mood disorders.