March 3rd, 2011

Elan Convicted over Marketing of Epilepsy Drug

San Francisco Chronicle

A U.S. subsidiary of Irish drugmaker Elan Corp. PLC has pleaded guilty to misdemeanor violation of the federal Food Drug and Cosmetic Act over the improper marketing of the epilepsy drug Zonegran.

Monday’s plea finalized a deal announced in July under which Elan agreed to pay $203.5 million to resolve all federal and state Medicaid claims into the marketing of Zonegran.

The U.S. Attorney’s Office for the District of Massachusetts says Elan Pharmaceuticals Inc. was sentenced to a criminal fine of $97 million and forfeit of $3.6 million in substituted assets.

The firm also agreed to pay $102 million to resolve civil allegations under the False Claims Act.

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