Two Pfizer subsidiaries, Pharmacia & Upjohn Company, Inc. and Pharmacia & Upjohn Company LLC, have settled criminal and civil charges related to the promotion of their human growth hormone product, Genotropin.
The first unit agreed to plea guilty to offering a kickback to a pharmacy benefits manager and will pay a criminal penalty of $19.68 million. The second subsidiary has entered into a deferred prosecution agreement and will pay $15 million in civil fines and penalties to resolve charges that illegally promoted Genotropin for off-label uses.
A former Pfizer vice president turned whistleblower was angered by the praise for Pfizer for self-reporting, contending that “Pfizer would have done nothing if I didn’t twist its arm.” Corporate Crime Reporter says it was whistleblower Peter Rost’s False Claims Act suit that triggered the Justice Dept. investigation.
The U.S. Attorney’s Office in Boston put out an April 2, 2007 press release on the settlement. Corporate Crime Reporter ran its story on whistleblower Peter Rost’s reaction on April 3, 2007.