AstraZeneca Settles With Uncle Sam
WASHINGTON D.C. (
) --
AstraZeneca
(AZN) - Get Report
has agreed to pay $520 million to settle charges that it illegally marketed its schizophrenia drug Seroquel, the U.S. government announced on Tuesday afternoon.
The government had accused AstraZeneca of promoting Seroquel between 2001 and 2006 for a variety of unapproved uses, including treatment of Alzheimer's disease, anxiety, dementia, depression and post-traumatic stress disorder.
The government also accused the drug company of illegally paying doctors to promote the drug.
Attorney General Eric Holder announced the settlement, telling the press, "Illegal acts by pharmaceutical companies and false claims against Medicare and Medicaid can put the public health at risk, corrupt medical decisions by health care providers, and take billions of dollars directly out of taxpayers' pockets."
AstraZeneca said in paying the settlement that it admitted no wrongdoing.
AstraZeneca agreed to a five-year probationary period with the U.S. government to ensure compliance with U.S. laws and will also have to issue a letter to doctors announcing the settlement of the case.
Sales of Seroquel were $3.4 billion in 2009.
Shares of AstraZeneca closed down 3% on Tuesday on twice its average daily trading volume -- two million shares traded versus one million shares traded on a typical day.
AstraZeneca's 3% loss on Tuesday was among the biggest in the drug sector.
-- Reported by Eric Rosenbaum in New York.
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