Bristol-Myers Squibb Co. (NYSE:BMY) and its subsidiary, Apothecon Inc. have agreed to pay over $515 million to settle civil suits over fraudulent marketing and pricing schemes.
The federal suit included charges of illegally promoting the anti-psychotic drug Abilify to children and the elderly contrary to FDA approval. The agreement stated that Bristol-Myers Squibb gave kickbacks to doctors and other healthcare providers from 2000-20003 in to form of consulting fees and luxury trips with the intent of enticing them to prescribe the medication.
"Patients are entitled to unbiased decision-making from their physicians and should not have to worry that financial inducements or lavish entertainment have influenced their physicians' prescribing choices," said US Attorney Michael J. Sullivan .
According to a report in The Boston Globe, Bristol-Myers Squibb and Apothecon also inflated the prices on a wide variety of cancer and generic drugs which resulted in deceiving federal healthcare programs that establish reimbursement rates based on those prices.
The whistleblowers, whom the federal government represented in the suits, will receive about $50 million for their share.
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