Pfizer Inc. agreed to pay the state of Connecticut $5 million as part of a $2.3 billion agreement settling litigation over how it marketed more than a dozen drugs, the largest such penalty ever levied against a pharmaceutical company according to the U.S. Department of Justice.
Pfizer is based in New York City and has its research headquarters in Groton, where it is among the largest employers in eastern Connecticut.
Federal and state prosecutors had accused the company of paying kickbacks to doctors in exchange for them prescribing Pfizer drugs like Lipitor, Viagra and Zoloft.
Officials also accused Pfizer of marketing the anti-inflammatory medicine Bextra for conditions other than those approved by the Food and Drug Administration; and promoted the antipsychotic drug Geodon for unapproved uses including the treatment of autism, attention deficit disorder and depression in children.
“Overreaching, underhanded sales tactics betrayed Pfizer”™s trust and heritage,” Connecticut Attorney General Richard Blumenthal said. “The company aggressively promoted drugs for unapproved, off label uses, bribed medical professionals with cash and gifts and used thinly disguised kickbacks to hawk its products ”¦ Such illegal and unethical marketing is unworthy of a highly competent corporate citizen with dedicated staff and scientists.”
Pfizer is paying $1 billion is civil penalties and restitution to states and the federal government, and $1.3 billion as a criminal fine and forfeiture. In the second quarter, Pfizer had a $2.3 billion profit on $11 billion in revenue.
Connecticut”™s Medicaid program will receive a total of $8.7 million, but half will go to the federal government to cover its share of the state’s Medicaid costs. The state will retain $4.3 million. In addition, it will receive more than $600,000 from a separate, multi-state settlement with Pfizer over the marketing of Geodon.
“We regret certain actions taken in the past, but are proud of the action we”™ve taken to strengthen our internal controls and pioneer new procedures so that we not only comply with state and federal laws, but also meet the high standards that patients, physicians and the public expect from a leading worldwide company dedicated to healing and better health,” said Amy Schulman, general counsel of Pfizer, in a prepared statement. “Corporate integrity is an absolute priority for Pfizer, and we will continue to take appropriate actions to further enhance our compliance practices and strengthen public trust in our company.”
