Pfizer legacy company agrees near half billion dollar settlement with DoJ

Wyeth Pharmaceuticals, a US pharma rival acquired by US behemoth Pfizer (NYSE:PFE) in 2009, has agreed to pay $490.9 million to resolve its criminal and civil liability arising from the unlawful marketing of the prescription drug Rapamune (sirolimus), which the company illegally promoted for uses not approved as safe and effective by the US Food and Drug Administration, the Justice Department revealed yesterday (July 30).

Rapamune is an immunosuppressive drug that prevents the body’s immune system from rejecting a transplanted organ, and the charge is the result of allegations by two whistleblowers who were sales representatives for the company, in a case filed in 2005.

“FDA’s drug approval process ensures companies market their products for uses proven safe and effective,” said Stuart Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division., adding: “We will hold accountable those who put patients’ health at risk in pursuit of financial gain.”