2 Sep
2009
Pfizer Inc. was hit today with a record-breaking $2.3 billion in fines, and federal prosecutors called the world’s largest drug maker a repeating corporate cheat for illegal drug promotions of 13 different drugs, including the big sellers: Viagra, Zoloft, and Lipitor.
Associate Attorney General Tom Perrelli, center, Health and Human Services Secretary Kathleen Sebelius, left, and Assistant Attorney General for the Civil Division Tony West, take part in a news conference to announce Pfizer will pay a record $2.3 billion civil and criminal penalty over unlawful prescription drug promotions on Wednesday, September 2, 2009 in Washington. (AP Photo/Evan Vucci)
As part of its illegal marketing practices, Pfizer invited doctors to meetings at luxury resort locations, paying their expenses and providing perks such as free golf, free massages, and other entertainments for gratis. The government claims Pfizer also promoted four prescription drugs, including the pain killer Bextra, as treatments for medical conditions different from those the drugs had been approved for by regulators at the Food and Drug Administration (FDA). Authorities said Pfizer’s sales department created bogus doctor requests for medical information in order to mail unsolicited information to doctors about unapproved uses and dosages. Pfizer’s illegal activities covered in today’s fine include big-selling drugs: Bextra, Lyrica, Geodon, Zyvox, Aricept, Celebrex, Lipitor, Norvasc, Relpax, Viagra, Zithromax, Zoloft, and Zyrtec.
The case only came to light thanks to five Pfizer employees and one Pennsylvania doctor who became whistleblowers, and will share $102 million of the settlement money. FBI Assistant Director Kevin Perkins had strong words of praise for the whistleblowers:
“…speak out against a corporate giant that was blatantly violating the law and misleading the public through false marketing claims.”
This is Pfizer’s fourth strike before the federal government for illegal marketing. Although, slammed with a record judgment against it, to Pfizer $2.3 billion is chump change, as witnessed by its original disclosure of the settlement figure paralleling the announcement of its planned acquisition of rival pharmaceutical company, Wyeth, for $68 billion. That deal is expected to close before this year’s end.
Digital Cheeseburger fumes:
Okay, a big fine for a recidivistic corporate behemoth with pockets deeper than any fine the government can reasonably wage against it. This repeat offender clearly swerves from any Three-Strike-Law applicable to citizens, but what of the individual wheels within this money-making machine? What of Pfizer’s president, CEO, CFO, all the way down to the sales people who knowingly flouted the law – is there to be no criminal charges proffered against them?
Let’s not forget the other benefactors of this grandiose payola, too – the doctors, who graciously accepted such clear and obvious invitations to make good from illegal activity.
We believe the government has little to no chance of effectively policing an industry gone wild, as the drug companies and doctors “cartel” has, if it continues blindly refusing to hold all individuals involved accountable. Slapping a corporation on the wrist is a snow job when compared to slapping irons on the actual players’ wrists.
Come on, Washington and your legislators – and excuse the over-simplification of example here, but it is effectively demonstrative in its application – you’re setting the groundwork for street gangs to incorporate their illicit activities, only to be corporately fined if caught in the act, while its thugs are free to ply their illegal trade indefinitely. Well, we did warn of a quirky example, didn’t we?!
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Tags: $2.3 billion fine, Aricept, Assistant Attorney General for the Civil Division Tony West, Associate Attorney General Tom Perrelli, Bextra, blue pill, cartel, Celebrex, CEO, CFO, corporate, crime, criminal, Digital Cheeseburger, doctors, drug companies, drugs, FBI, FBI Assistant Director Kevin Perkins, FDA, federal government, federal prosecutors, fines, Food and Drug Administration, Geodon, Health and Human Services, Health and Human Services Secretary Kathleen Sebelius, illegal activity, illegal.illicit, industry gone wild, Kathleen Sebelius, Kevin Perkins, legislators, Lipitor, Lyrica, Norvasc, payola, Pennsylvania, Pfizer, Pfizer Inc., Pfizer whistleblowers, pharmaceutical, pharmaceutics, president, Relpax, sales people, street gangs, Three-Strike-Law, Tom Perrelli, Tony West, unlawful prescription drug promotions, Viagra, Viagra Gets Stiff Penalty, Washington, whistleblowers, Wyeth, Zithromax, Zoloft, Zyrtec, Zyvox
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Mandy
10 Nov 2009
Very nice site! Cool article.
Colin
10 Nov 2009
Great site, and VERY funny title!