Abstract
Settlement at Hand in Remicade Dispute?
WHITEHOUSE STATION, NJ 10/14/10—Merck is looking forward to a decision next year in its dispute with J&J over marketing rights to infliximab (Remicade), used in the treatment of serious disorders characterized by inflammation such as rheumatoid arthritis. A panel of three retired federal judges presided over a private arbitration. Final arguments are to be made some time in December.
The dispute arose when Merck acquired Schering-Plough. Johnson & Johnson claimed that this action triggered a “change-of-control” clause that would cause a marketing partnership governing Remicade to end. Merck said the partnership should remain in force because the acquisition of Schering was a “reverse merger” in which Schering technically was the surviving corporation. However, Merck's management took over, and the new company kept the Merck name.
Drug Companies Top List of Industries Settling DOJ Fraud Cases
WASHINGTON, DC 10/25/10—Taxpayers Against Fraud today said that the pharmaceutical industry is Number 1 in settlement of fraud cases brought by the US Department of Justice. Eight of the ten largest settlements in 2009 were with drug companies and concerned promotion of products such as Botox and Seroquel for non-FDA-approved (off-label) uses. Companies that have been forced to pay large fines include Allergan, AstraZeneca, Novartis Pharmaceuticals, Forest Laboratories, Teva Pharmaceuticals, Pfizer Inc., and Eli Lilly & Co. An FDA official recently suggested that criminal charges should be brought against corporate officers in such cases, as discussed elsewhere in this issue.
Approximately 80% of the $3.1 billion collected by the DOJ last year came from healthcare firms, which included hospitals and insurance companies as well as pharmaceutical firms.