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September 2, 2010

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.

Posted by Andrea Walker at 4:57 PM | | Comments (0)
        

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About Picture of Health
Meredith CohnMeredith Cohn has been a reporter since 1991, covering everything from politics and airlines to the environment and medicine. A runner since junior high and a particular eater for almost as long, she tries to keep up on health and fitness trends. Her aim is to bring you the latest news and information from the local and national medical and wellness communities.

Andrea K. WalkerAndrea K. Walker knows it’s weird to some people, but she has a fascination with fitness, diseases, medicine and other health-related topics. She subscribes to a variety of health and fitness magazines and becomes easily engrossed in the latest research in health and science. An exercise fanatic, she’s probably tried just about every fitness activity there is. Her favorites are running, yoga and kickboxing. So it is probably fitting that she has been assigned to cover the business of healthcare and to become a regular contributor to this blog. Andrea has been at The Sun for nearly 10 years, covering manufacturing, retail , airlines and small and minority business. She looks forward to telling readers about the latest health news.
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