Pfizer Subsidiaries Reach $34.7 Million in Settlements

Two Pfizer subsidiaries reached separate settlements with the U.S. government to address charges related to the marketing of the human growth hormone Genotropin, Pfizer announced.

The settlements involve former subsidiaries of Pharmacia and pertain to activities that happened before Pfizer acquired the company in 2003. One case cites the off-label promotion of Genotropin, and the other concerns the inappropriate use of a vendor contract to increase drug sales.

In total, the subsidiaries have agreed to pay $34.7 million in fines.

In one case, Pharmacia & Upjohn Company LLC has entered into a deferred prosecution agreement with the Department of Justice (DOJ) that includes a $15 million fine to address the improper promotion of Genotropin. Under the agreement, no criminal charges will be filed against Pharmacia in return for compliance with the terms of the agreement.

As detailed in the settlement agreement, the subsidiary promoted Genotropin between January 2000 and March 2003 for off-label uses, including anti-aging, improved athletic performance and enhanced appearance. Genotropin is approved for treating various growth hormone deficiencies.

Pfizer said it discovered and reported the improper practices to the DOJ, the Office of Inspector General and the FDA when it acquired Pharmacia.

Another subsidiary, Pharmacia & Upjohn Company Inc., will plead guilty to a single count of offering an outside vendor remuneration in the form of a contract to manage a Genotropin patient-assistance program as an incentive to promote Pharmacia products. The contract was awarded in 2000. The subsidiary, which has no operational role in Pfizer today, will pay a fine of $19.7 million.

Pfizer said the settlements will not affect its current marketing and promotion practices for Genotropin.