Posts Tagged ‘illegal marketing of drugs’

BNET: ‘The Dog Ate AstraZeneca’s Homework! Evidence on Misleading Drug Ad Disappears From Company’s Files’

Wednesday, July 7th, 2010

BNET
By Jim Edwards
July 7, 2010

AstraZeneca (AZN) says it has lost a crucial internal document that would explain how an ad for its antipsychotic Seroquel misleadingly claimed there was “no weight gain” with the drug and described its “favorable weight profile.” But the company admits it kept the six-year-old envelope that once allegedly contained the ad’s approval certificate, according to a ruling by the U.K.’s Prescription Medicines Code of Practice Authority.

The drug industry watchdog also alleges AZ’s Seroquel management team “pressured and manipulated” executives around them in order to make sure negative data on Seroquel was buried. The PMCPA ruled that AZ had breached its code of practice, which requires companies to operate in “a professional, ethical and transparent” manner.

If there’s a lesson here for managers, it’s this: Simply winning the legal war isn’t good enough. Consumers — and your own employees, as the Seroquel case shows — expect companies to go above and beyond. (AZ has mostly won the litigation filed against it which alleges the company failed to warn patients that Seroquel causes weight gain and diabetes. It settled with the Department of Justice for $520 million.)

Many of the allegations in the PMCPA case are familiar, but what’s new is the source: One of the complainants was an unnamed male former AZ executive, employed at the company from 1992 to 2001, who from 1995 to 2000 was responsible for the medical aspects of the U.K. launch and subsequent marketing of Seroquel.*

In terms of the ad, the BBC reported in January that AZ had published a misleading ad in the British Journal of Psychiatry in April 2004. The PMCPA asked AZ to produce all the documentation behind the ad. Here’s its characterization of AZ’s response:

… for a product that had been marketed for more than 12 years in the UK, the company did not believe that it could reasonably investigate and respond to such a broad request in relation to specific clauses of the code.

The Code requires companies keep relevant documents for three years, AZ argued, and the ad itself was at least five years old, thus, “AstraZeneca had been unable to produce the certificate approving the advertisement from its archive.” But:

The Appeal Board noted from the AstraZeneca representatives at the appeal that although the job bag for the advertisement at issue still existed, it did not contain the relevant certificate.

How unfortunate!

More seriously, the PMCPA appeared to take seriously the ex-employee’s allegation that AZ buried or manipulated data on Seroquel long after the company became aware of weight-gain effects on its patients. The executive alleged that in 1997 he was told by a colleague…

Read entire article here:  http://industry.bnet.com/pharma/10008835/the-dog-ate-astrazenecas-homework-evidence-on-misleading-drug-ad-dissappears-from-companys-files/

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A good start: Antipsychotic drug maker to pay half billion in fines for illegal marketing

Thursday, May 20th, 2010

FoodConsumer
By Dr. Mercola
May 20, 2010

Drugmaker AstraZeneca has agreed to pay $520 million to settle federal investigations into marketing practices for its schizophrenia drug Seroquel. This makes AstraZeneca the fourth big drug company in the last three years to admit to federal charges of illegal marketing of antipsychotic drugs.

The company was accused of misleading doctors and patients by spotlighting favorable research while failing to adequately disclose studies showing that Seroquel increases the risk of diabetes.

The New York Times reports that:

“AstraZeneca still faces more than 25,000 civil lawsuits filed on behalf of patients contending that the company did not disclose the drug’s risks.”

Dr. Mercola’s Comments:

The illegal and unsafe actions of drug companies make headlines yet again as AstraZeneca agrees to pay a $502 million fine to settle the federal charges of using illegal marketing tactics to drive up sales of its blockbuster drug Seroquel.

Although this sounds like a lot of money, it’s little more than a symbolic slap on the wrist when you consider how much money they’ve made from the drug already. According to the New York Times, the antipsychotic drug Seroquel pulled in $4.9 BILLION in sales last year!

You see from the company’s perspective it’s merely another cost of doing business.  For every dollar they are fined they are making ten. While not all of their profit was due to their illegal marketing practices, the fine was only a one-time fine, while revenues have poured in over many years and will continue to do so in the future, as a result of these illegal activities.

Read entire article:  http://www.foodconsumer.org/newsite/Non-food/Drug/drug_company_illegal_marketing_20-5100730.html

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Psychiatrist Stefan Kruszewski blows the whistle on antipsychotic drug maker resulting in half billion dollars in fines

Friday, April 30th, 2010

ABC News 27
WHTM.com
By Myles Snyder
April 29, 2010

Harrisburg psychiatrist Stefan Kruszewski offers no pain relief for pharmaceutical companies. He testifies against them when they make false claims about their drugs, and he’s good at it.

The AstraZeneca drug Seroquel is for schizophrenia and bipolar disorder, but the company marketed it to seniors and kids for other things and wooed doctors into over-prescribing it. Kruszewski blew the whistle on AstraZeneca and it was ordered to pay a half-billion dollars in fines to the government.

As a scientist, Kruszewski was angry that the company exaggerated the benefits and suppressed evidence about the drug’s negative side effects in the name of profit.

“Doctors need to be more aware and need to make decisions, not based upon what pharmaceutical companies are telling them, but based upon unbiased information,” he said.

As a whistle blower, Kruszewski gets a piece of that half billion dollar settlement worth tens of millions of dollars. It’s not the first big money case he’s won, but there’s also a cost.

Read entire article:  http://www.whtm.com/news/stories/0410/731076.html

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After $1.4 billion criminal fine for illegal marketing, Eli Lilly tries something new—promoting “ethical behavior”

Monday, March 8th, 2010

IndyStar.com
John Russell
March 8, 2010

Eli Lilly and Co. has agreed to add four new senior positions to “promote highly ethical and compliant behaviors” as part of a settlement of two lawsuits arising from the company’s illegal marketing and promotion of several drugs.

The Indianapolis drugmaker also has agreed to upgrade its policies and procedures to ensure that patient safety “shall be of paramount importance,” according to a government filing the company made today.

Last year, Lilly paid $1.4 billion, the largest criminal fine ever imposed on a U.S. corporation, over the illegal marketing of Zyprexa. The company also pleaded guilty to a misdemeanor and agreed to additional oversight to resolve a 5-year-old federal investigation.

Federal prosecutors had said Lilly unlawfully promoted Zyprexa for agitation, aggression, hostility, dementia, depression and generalized sleep disorder, although the drug was approved only for schizophrenia and bipolar disorder.

The company had also improperly marketed Evista, its osteoporosis drug, and Prozac, its antidepressant.

In response, several shareholders sued the company, claiming it breached fiduciary duty in connection with the illegal marketing, exposing Lilly to substantial risk of damage. The suits are known as “derivative claims” as they were brought by shareholders on behalf of the company, rather than on behalf of shareholders, seeking to force the company to take corrective steps.

Read entire article:  http://www.indystar.com/article/20100308/BUSINESS/3080383/Eli-Lilly-adding-four-ethics-watchdogs

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In wake of Pfizer scandal Congresswoman introduces bill: Deny federal funds to drug companies with felony convictions

Tuesday, October 20th, 2009

Ed Silverman
Pharmalot
October 19, 2009

Now that Pfizer agreed to pay $2.3 billion for illegally marketing several drugs, including Bextra, Zyvox, Geodon and Lyrica, over several years, one Congresswoman wants to punish stop such behavior – at least among those that do business with the federal government.

And so Betty McCollum, a Democrat from Minnesota, has introduced a bill that prohibits companies with a felony conviction from receiving any federal funding for five years after a conviction; prohibits corporate felons from making federal campaign contributions for five years, and limits the lobbying the corporation can do during that period to $1 million.

She calls her legislation the ACORN Act, or Against Corporations Organizing to Rip-off the Nation Act of 2009. Why? A significant target of recent Congressional action is the better-known ACORN, a non-profit that trains and advocates for poor and working-class Americans. Over the past 15 years, ACORN has received $53 million in federal funds. By contrast, Pfizer won $73 million in federal contracts in 2007, as The Nation notes, but has largely escaped Congressional wrath.

Read entire article: http://www.pharmalot.com/2009/10/congresswoman-deny-pfizer-any-federal-funding/

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