MO to receive $16.9M in multistate drug settlement

Missouri is receiving $16.9 million as part of a 45-state settlement with Abbott Park, Ill.-based pharmaceutical company Abbott Laboratories following allegations of illegal off-label marketing. Of the settlement funding, $15.2 million will be used to reimburse Missouri's Medicaid program and $1.9 million will be used to pay consumers deceived by the alleged unlawful marketing practices.

According to a news release from Missouri Attorney General Chris Koster's office, Abbott allegedly subjected its drug Depakote to off-label marketing, or prescribing pharmaceuticals for uses not approved by the Federal Drug Administration. Depakote has been approved for the treatment of seizure disorders, mania associated with bipolar disorder, and prevention of migraines, but according to the release, it also was marketed for treating disorders such as schizophrenia, agitated dementia and autism.

As part of the settlement, Abbott agreed to pay a total $1.6 billion, comprising $800 million to federal and state governments to resolve civil allegations, $700 million in criminal penalties and $100 million to states to resolve consumer protection matters, according to a news release from the company. Abbott also agreed not to make false or misleading claims about Depakote and to cease promoting off-label uses.

"We are pleased to resolve this matter and are confident we have the programs in place to satisfy the requirements of this settlement," said Laura Schumacher, Abbott executive vice president and general counsel, in the release. "The company takes its responsibility to patients and health care providers seriously and has established robust compliance programs to ensure its marketing programs meet the needs of health care providers and legal requirements."

Koster said the case is the largest consumer protection-based pharmaceutical settlement reached to date.

“Consumers trust that their medication is safe and effective at treating the conditions for which they are prescribed,” Koster said in the release. “This settlement should send a strong signal to all pharmaceutical companies that Missouri will take action against this deceptive marketing.”

Publicly traded Abbott (NYSE: ABT) posted sales of $9.5 billion in the first quarter, a 4.6 percent increase from sales of $9 billion in the same quarter of 2011. Its net income was $1.2 billion, a 43.8 percent increase compared to profits of $864 million in first-quarter 2011, according to the company's earnings report for the quarter ended March 31.

As of 9:03 a.m., the company's shares were trading at $62.18, compared to its 52-week range of $46.29 to $63.20.[[In-content Ad]]