Elan Pharmaceuticals Agrees to Settle Claims Related to Marketing of Zonegran for $203 Million

Elan Corporation, plc, of Dublin, Ireland has agreed to settle claims related to the marketing of Zonegran, an anti-epileptic drug for which it sold the rights to a Japanese company in 2004. In January of 2006, Elan admitted that the the DOJ and the Department of Health and Human Services were looking into its marketing practices, but has since declined to elaborate. The product was approved for use in the United States in 2000. Under the agreement, reached with the United States Attorney for the District of Massachusetts, Elan will resolve all federal and state-based claims for $203.5 million. Elan Pharmaceuticals, Inc., a U.S.-based subsidiary, will plead guilty to a misdemeanor.

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