Drug company pays big fine

Malaysia Sun Saturday 29th September, 2007

Bristol-Myers Squibb will pay US$515 million to settle a probe into illegal kickbacks.

The U.S pharmaceutical giant has agreed to the payments to settle civil allegations of drug marketing to doctors and fraudulent pricing of its drugs to government health programs.

The company had agreed in principle to a settlement and to implement a five-year corporate integrity agreement.

Government investigators alleged that Bristol-Myers had paid illegal remuneration to physicians and other health care providers to induce them to purchase BMS drugs.

There was also culpability in the form of stocking allowances, price protection payments, market share payments, and free goods in order to induce retail pharmacy and wholesale customers to purchase BMS products.