Maker of Botox pays state over improper marketing
The state of Maryland will get $152,547 for its Medicaid program under a settlement with the maker of Botox for marketing the drug for unapproved uses, the attorney general's office announced today.
Attorney General Douglas F. Gansler said the state joined the federal government and other states in reaching an agreement in principle with pharmaceutical manufacturer, Allergan, Inc., and Allergan USA, Inc. to settle allegations of "off-label marketing" of the drug Botox.
Maryland received a portion of the $225 million settlement, of which $33 million will be distributed to Medicaid programs nationwide.
The Office of the United States Attorney for the Northern District of Georgia also filed a complaint in the United States District Court alleging Allergen violated the Food, Drug and Cosmetic Act.
Allergan entered a plea agreement in that case, pleading guilty and agreeing to pay an additional $375 million in criminal fines and other fees.
Botox was initially approved to treat crossed eyes, uncontrollable eye blinking, abnormal head and neck posture with involuntary contractions and underarm sweating.
The investigation revealed that Allergan engaged in a nationwide off-label marketing campaign of Botox targeting patients suffering from headache, pain, overactive bladder and spasticity. The marketing plan included providing physicians “free” reimbursement services and support.
Allergan also funded continuing medical education programs, honoraria, and grants to health care professionals to promote off-label uses for Botox.
The settlement reimburses the federal government and participating states for excessive amounts paid by the Medicaid program as a result of Allergan’s improper marketing campaign.
Allergan will also have its future marketing practices monitored by federal officials.
A team from the National Association of Medicaid Fraud Control Units participated in the investigation and represented the interests of the states during negotiations with Allergan.








