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Vermont To Receive $74,000 From Settlement Of Claims Against Allergan For Off-Label Marketing Of Botox

CONTACT: Edward A. Baker, Assistant Attorney General, (802) 828-5511

January 13, 2011

Attorney General William H. Sorrell announced today that Vermont will receive approximately $74,000 as part of a national settlement totaling $600 million based on whistleblower complaints that pharmaceutical manufacturer Allergan, Inc., and Allergan USA, Inc. (“Allergan”) illegally marketed the drug Botox for uses not approved by the FDA. Specifically, the complaints alleged that Allergan engaged in a nation-wide off-label marketing campaign to get physicians to prescribe Botox for headache, pain, overactive bladder, and spasticity. The marketing campaign included funding continuing medical education programs at which Botox was promoted off-label, and providing physicians with “free” reimbursement services at which they were coached to use improper billing codes. Allergan’s marketing campaign led to overutilization of Botox for medically unnecessary purposes. In addition to civil penalties, Allergan will plead guilty to a misdemeanor violation of the Food, Drug, and Cosmetic Act, and pay criminal fines and forfeiture. Allergan will also enter into a Corporate Integrity Agreement with the federal government to closely monitor the company’s future marketing practices.

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