Wednesday, September 30, 2009

Off-Label Promotion Could Land Former Drug Executive In the Pokey


No doubt you have learned (or are learning) about off-label promotion of prescrition drugs. The FDA has become very aggressive in pursing charges against companies when they violate this prohibition. Typically, cases for off-label marketing are settled with the company paying a fine. In fact, in this case the company agreed to pay about $37 million in 2006 to settle charges related to its marketing, but they also went after the "head man" of the company. Although the executive was acquitted by the federal jury in San Francisco of a related charge of off-label marketing itself, known as “misbranding,” he was convicted of wire fraud.

Wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine. The executive is free on bond awaiting sentencing. The bottom line? If you work for a drug company be careful about what you say!!

To learn who the executive was, who he worked for, and what drug was being promoted read the whole story in the New York times:




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