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Texas Attorney General's office secures $19.9 million agreement with drug maker
From Staff Reports
Texas Attorney General Greg Abbott recently announced the resolution of a civil Medicaid fraud enforcement action against Swiss-based pharmaceutical drug company Novartis for unlawful and deceptive marketing of a topical skin cream product.
Under the agreement, Novartis must pay a total of $19.9 million to resolve the State of Texas and the federal government’s allegations of off-label marketing. Texas’ share of the settlement proceeds is $6,638,250. The State’s investigation revealed that Novartis unlawfully marketed eczema drug Elidel to treat infant children while failing to disclose the drug’s known harmful side effects – including cancer-related risks.
Evidence uncovered by the State revealed that Novartis improperly urged physicians to prescribe Elidel to children under two years of age for purposes that had not been approved by the U.S. Food and Drug Administration. Because of the defendant’s misrepresentations, the Texas Medicaid program overpaid for Elidel prescriptions.
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