Shire agrees to settlement with US government over ADHD drug marketing

4 February 2013

Ireland-headquartered drugmaker Shire (LSE: SHP) said on Friday that it has reached an agreement in principle to pay around $57.5 million to resolve the previously disclosed civil investigation into the company’s US sales and marketing practices relating to the attention-deficit hyperactivity disorder (ADHA) drugs Adderall XR (mixed amphetamine salts), Vyvanse (lisdexamfetamine) and Daytrana (methylphenidate transdermal system).

This seems like a very favorable outcome for Shire relative to most market expectations of a much higher penalty, say analysts at Credit Suisse.

The investigation was led by the US Attorney's Office for the Eastern District of Pennsylvania, and Shire disclosed the investigation in 2009. The agreement also addresses sales and marketing practices relating to Lialda (mesalamine) and Pentasa (mesalamine) pursuant to a subsequent voluntary disclosure made by Shire.

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