AG, Cephalon settle for $425M in drug marketing case

A $425 million settlement with drug company Cephalon marks the first coup of what Attorney General Richard Blumenthal promises to be an intensive ongoing investigation into the company’s off-label marketing. Cephalon, which manufactures and markets drugs for neurological diseases, sleep disorders, pain, addiction and cancer, was the subject of an unprecedented investigative partnership between Connecticut and the U.S. Attorney’s Office in Philadelphia. The investigation revealed that patients suffered after the company promoted drugs for unapproved uses. The settlement will return millions of dollars to the Medicaid program.