Celgene to pay $280 million to settle cancer drugs false claims litigation

US biotech firm Celgene (Nasdaq: CELG) has reached a civil settlement with relator Beverly Brown, the Department of Justice, 28 States, the District of Columbia, and the City of Chicago to resolve the previously-disclosed False Claims Act litigation pending in the US District Court for the Central District of California.

The litigation related primarily to whistle-blower Beverly Brown’s allegations that Celgene promoted Thalomid (thalidomide) for off-label uses before its 2006 Food and Drug Administration approval for newly-diagnosed multiple myeloma. Celgene’s shares dipped 1% to $136.44 by close of trading in New York yesterday.

Under the settlement, Celgene will pay a total of $280 million to the United States, 28 States, the District of Columbia, and the City of Chicago to resolve the litigation. This final settlement includes the resolution of all allegations the relator made with respect to Thalomid and Revlimid (lenalidomide). Revlimid generated $6.97 billion in revenue for Celgene last year, while Thalomid sales were $35.1 million.