BRIEF—AstraZeneca agrees settlement on antipsychotic and cholesterol drugs

Anglo-Swedish pharma major AstraZeneca has agreed to pay $110 million to settle two lawsuits brought by the state of Texas claiming that it fraudulently marketed the antipsychotic drug Seroquel (quetiapine) and Crestor (rosuvastatin) for high cholesterol.

Despite news of the settlement, AstraZeneca’s shares were up 2.54% at £60.71 by early afternoon trading today.

“AstraZeneca makes no concessions or admissions of fault in the settlement agreements,” the drugmaker said in a statement.

According to media reports, the largest settlement, totalling $90 million, resolves allegations the drugmaker encouraged doctors to use Seroquel for unapproved uses.

A second settlement for $20 million covers allegations it misrepresented the benefits of Crestor.

Texas had sought $5 billion under the lawsuits, claiming the company had falsely and misleadingly marketed the two drugs in violation of the Texas Medicaid Fraud Prevention Act.