Connecticut’s Medicaid program will net $200,000 as its share of a multi-million-dollar federal-state settlement with a Pennsylvania drugmaker accused of hyping the effectiveness of its prescription medicines despite insufficient clinical evidence or federal approval, authorities say.
The state Attorney General George Jepsen, Chief State’s Attorney Kevin T. Kane and state Department of Social Services (DSS) Commissioner Roderick L. Bremby jointly announced Thursday the settlement with Shire Pharmaceuticals LLC.
The maker of Adderall XR, Vyvanse, Daytrona, Lialda and Pentasa acknowledged that it was responsible for marketing those drugs as treatments for conditions not approved by the Food and Drug Administration between February 2007 and September 2010.
For instance, Shire promoted Adderall XR as better than any other drug for treating a specific conduct disorder, investigators said. It also hyped Pentasa, a treatment for colitis and Crohn’s disease, without sufficient clinical data and FDA backing.
Under the settlement, Shire will pay Connecticut and other states and the U.S. government $56.5 million, of which $48.1 million will go to Medicaid programs to resolve civil allegations that caused false claims to be submitted to government healthcare programs.
“Improper marketing of drugs leads to false and fraudulent claims against our Medicaid program,” Jepsen said in a statement.
“We are pleased to have reached a resolution and to put this matter behind us,” Shire CEO Flemming Ornskov said in a statement posted on the drugmaker’s website Thursday.
The portion of the settlement attributable to the state and federal shares of Connecticut’s Medicaid program is $388,144.98, of which $189,337.55 represents the net state share, authorities said. Connecticut will receive an additional $15,152.57 for state-specific prescription drug programs administered by DSS.
Administered by DSS, Connecticut Medicaid provides care and treatment to the state’s neediest residents.
Shire also agreed to submit to close monitoring of its drug sales and marketing practicing to ensure full compliance in the future.
