Healthpoint, DFB to pay up to $48M in drug case

(AP)—Healthpoint Ltd. and DFB Pharmaceuticals will pay up to $48 million to settle allegations that Healthpoint marketed a prescription skin ointment without approval from federal regulators.

The Justice Department said Healthpoint caused false claims for reimbursement to be submitted to Medicare and Medicaid for Xenaderm, which is used for treating nursing home patients' bed sores. Fort Worth, Texas-based Healthpoint is one of DFB's operating companies.

The government alleged that Healthpoint's business strategy was to market new modeled after products that were available before October 1962 in order to avoid the time, effort and expense of obtaining approval from the . Products containing Xenaderm's principal were on the market before 1962, but the FDA determined the ingredient was less-than-effective for its intended use.

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Novo Nordisk pays $26.7 million to settle claims

Jun 11, 2011

Danish drug company Novo Nordisk has agreed to pay $25 million to settle allegations that it promoted the misuse of blood clotting drug NovoSeven, the US Justice Department announced Friday.

FDA cracks down on untested cold medicines

Mar 02, 2011

(AP) -- The Food and Drug Administration says it will remove roughly 500 unapproved cold and allergy medications from the market as part of an ongoing campaign cracking down on ineffective prescription medications.

FDA orders lower doses in prescription painkillers

Jan 13, 2011

(AP) -- Federal health regulators are limiting a key ingredient found in Vicodin, Percocet and other prescription painkillers that have been linked to thousands of cases of liver damage each year.

FDA concerned about some STD medications

Mar 10, 2008

The U.S. Food and Drug Administration has warned six companies to stop marketing unapproved drugs for treating and preventing sexually transmitted diseases.

Recommended for you

Vaccine proves effective against deadly Middle East virus

Sep 15, 2014

(Medical Xpress)—A vaccine developed by an international team of scientists led by the University of Pittsburgh School of Medicine successfully protects mice against a contagious and deadly virus spreading across the Middle ...

New study looks at improving vaccine awareness

Sep 15, 2014

The best medical therapies won't do much good if the public abstains from using them. Resistance to life-saving interventions may have a variety of root causes, particularly if the biotechnology involved is new and poorly ...

High-dose opioid prescribing continues to climb

Sep 12, 2014

High-dose opioid prescribing increased by 23 per cent in Canada between 2006 and 2011, despite clinical guidelines recommending that most patients should avoid high-doses of these drugs, according to new ...

Feds say Bayer colon supplement makes bogus claims

Sep 12, 2014

The United States government accused Bayer of making scientifically unproven statements about the health benefits of a popular probiotic on Friday, claiming the German pharmaceutical giant was in contempt of court.

User comments