Schering-Plough Settles With The Federal Government

Tom Methvin

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Schering-Plough Corp. will pay $435 million to settle the federal government's case against the drug maker arising out of the company's drug sales and marketing practices. The federal investigation also concerned the company's clinical trial programs. Schering-Plough will pay $255 million to resolve civil aspects of the previously disclosed investigation, which involves the drugs Intron and Temodar, a treatment for brain tumors. In addition, a subsidiary, Schering Sales Corp., will pay a criminal fine of $180 million and plead guilty to one count of conspiracy under the agreement.

The settlement brings to an end the investigation by the U.S. Department of Justice and the U.S. Attorney's Office in Boston. In May of 2003, Schering-Plough was notified by the U.S. Attorney's Office that the office was pursuing allegations against the company involving payments made to doctors in return for prescribing the drug maker's drugs, as well as claims the company was destroying documents sought by investigators. As part of the settlement, the drug maker also said it would add a section to an existing corporate integrity agreement it has with the Office of Inspector General of the U.S. Department of Health and Human Services.

Source: Wall Street Journal