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: False Claims Act - Qui Tam

Japanese drug company will pay $4 million to settle FCA charges

By Qui Tam

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Otsuka American Pharmaceutical Inc., the U.S. subsidiary of Japanese pharmaceutical manufacturer Otsuka Pharmaceutical Co., Ltd., will pay more than $4 million to resolve allegations that it marketed Abilify, an atypical antipsychotic drug, for "off-label" uses.

The Corporate Crime Reporter said that the Food and Drug Administration had approved Abilify to treat adult schizophrenia and bi-polar disorder but that the company promoted it for pediatric use. While physicians are allowed to prescribe drugs for "off-label" uses, companies are prohibited from promoting drugs for uses that aren't FDA approved.

The whistleblower in the suit will receive $348,000 as his relator's share.

Full post as published by False Claims Act - Qui Tam on March 31, 2008 (boomark / email).

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