Pfizer To Plead Guilty In Rapamune Settlement

Pfizer Inc.’s Wyeth Unit plans to plead guilty to a misdemeanor “misbranding” offense under federal law as part of a $491 million settlement of a government investigation of the company’s promotion of the organ-transplant drug Rapamune.  The DOJ has been investigating allegation that Wyeth promoted Rapmune for unauthorized uses and paid kickbacks to doctors.  Under the agreement-in-principle with the DOJ, Pfizer will pay $257 million to resolve the civil allegations and $234 million to resolve the criminal allegations regarding Rapamune.

Pfizer also disclosed that in August 2012, its Wyeth unit agreed to settle a separate government investigation surrounding the promotional practices for its heartburn drug, Protonix.  Wyeth will pay $55 million, plus interest,  in civil disgorgement to the U.S. Federal Food, Drug and Cosmetic Act, but will not admit to any wrongdoing.

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