AG McDaniel Settles With Drug Manufacturer

by Talk Business & Politics staff ([email protected]) 127 views 

From Attorney General Dustin McDaniel’s office:

Attorney General Dustin McDaniel announced that Arkansas, other states and the federal government have reached an agreement with Shire Pharmaceuticals LLC to settle allegations that the drug manufacturer illegally marketed five of its drugs.

As a result of the settlement, Arkansas’s Medicaid program will receive $619,894.13, which includes federal matching funds.

“When pharmaceutical companies circumvent the law to increase their profits, consumers pay the price,” McDaniel said. “I am glad that, with this settlement, we can put money back into the Medicaid program and ensure that medical professionals are receiving accurate information about the drugs manufactured by this company.”

Shire was accused of illegally promoting the drugs Adderall XR, Vyvanse, Daytrana, Lialda and Pentasa, thus causing false claims to be submitted to Medicaid.

Adderall XR, Vyvanse and Daytrana are approved by the FDA for treatment of Attention Deficit Hyperactivity Disorder. The company is accused of making claims about those drugs that were not supported by clinical data. Additionally, Adderall was marketed for a use not approved by the FDA.

Lialda and Pentasa are drugs approved for treatment of mildly to moderately active ulcerative colitis. Shire is accused of marketing those drugs for uses not approved by the FDA and saying that Lialda worked better than other medications, despite a lack of clinical data.

The settlement is based on actions filed in federal court in Pennsylvania and Illinois.