5 Pharmaceutical Drugmakers Pay North Carolina $25M for Off-Label Marketing, Kickbacks

Five pharmaceutical companies have paid more than $25 million to North Carolina to settle fraud allegations, thanks to investigations by the state's Medicaid Investigations Unit, according to a news release from the North Carolina Department of Justice.

The following cases were announced in the release:

Allergan and Allergan USA have paid $1,388,079.10 to settle allegations that it improperly marketed Botox for uses not approved by the FDA.
Kos Pharmaceuticals has paid $415,425.92 to settle charges that it marketed cholesterol drugs Advicor and Niaspan for unapproved uses and paid physicians kickbacks to encourage use of the drugs.
Forest Laboratories and Forest Pharmaceuticals have paid $5,362,477.63 to North Carolina to settle allegations that it had marketed anti-depressants Celexa and Lexapro for use in children while the FDA had approved the drugs for adults only.
GlaxoSmithKline has paid $11,846,289.32 to the state to resolve allegations that it knowingly manufactured and sold four products (Paxil CR, Avandamet, Kytril and Bactroban) whose strength, purity and quality did not meet FDA standards.
Novartis Pharmaceuticals Corporation paid $6,248,818.25 to resolve allegations that it made illegal payments to healthcare professionals to encourage their promotion and prescription of Trileptal, Diovan, Zelnorm, Sandostatin, Exforge and Tekturna for uses not approved by the FDA.

Nearly $4.5 million of the funds recovered from the settlements will go towards North Carolina's public schools. The rest will support Medicaid efforts in the state.

The state's MIU has recovered more than $400 million over the past decade.

Read the North Carolina DOJ release on pharmaceutical companies and Medicaid.

Read more about pharmaceutical fraud:

- Louisiana Attorney General Sues GlaxoSmithKline for Wrongfully Marketing Diabetes Medication

- Louisiana AG Accuses 18 Drugmakers of Overcharging Medicaid

- Eight Prescription Drug Makers Pay $4.3M for Overcharges to Iowa Medicaid Program


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