A settlement has reached with the Department of Justice over AstraZeneca Seroquel investigation and British pharmaceutical business. Seroquel, an anti psychotic medication, has been under fire for being marketed for unapproved purposes. $ 520 million in restitution is what the drug maker is willing to pay the Department of Justice. The drug itself, which sold about $ 4.9 billion last year, probably won’t need guaranteed loans to cover the expenses.
AstraZeneca Seroquel was marketed for the wrong purposes
The qualms over AstraZeneca Seroquel were based on the drug being marketed for purposes other than those it is approved for. The DOJ says that there were physician kickbacks of payday cash for those that prescribed the drug for off label purposes. The drug Seroquel is quetiapine, which is used to treat schizophrenia and certain bi-polar disorders. Physicians are allowed to prescribe medication for off label use if they think it is appropriate. The FDA considers it a no-no to market pharmaceutical drugs for off label uses.
Part of this investigation is whether AstraZeneca Seroquel was marketed for uses that aren’t approved for it yet. According to the Wall Street Journal , AstraZeneca marketed the drug for off label uses, such as to treat post traumatic stress disorder, anxiety, Alzheimer’s Disease, aggression, and depression. The Justice Department believes the pharmaceutical giant also gave kickbacks to physicians to prescribe it for those purposes. AstraZeneca set aside $ 250 million in October for a settlement but denies the claims.
Lawsuits pending
You will find a few lawsuits against AstraZeneca concerning the side effects of off label use of the drug, Seroquel. Seroquel isn’t really the first drug to be used off label; each drug has an alternate use, so the use of medication for off label purposes is actually somewhat widespread. Aspirin, as an example, is used to thin blood and used as a pain reliever but also can be used for treating heart disease. Physicians often prescribe drugs for off label uses which is fine. Unfortunately, many physicians prescribe medication for their own purposes involving money when there are other choices accessible which is very troubling.
What is the impact?
Because the company put the cash aside for an AstraZeneca Seroquel settlement months ago, probably not much will come of it. The business will probably disclose payments to physicians and will comply with federal instructions.
Resources
Wall Street Journal
http://online.wsj.com/article/BT-CO-20100427-717519.html?mod=WSJ_World_MIDDLEHeadlinesEurope
