Kos Pharmaceuticals Settle Kickback and Off-Label Promotion Charges

Delaware-based Kos Pharmaceuticals ageed to pay more than $41 million to resolve alleged misconduct relating to its drugs Advicor and Niaspan.  Kos, a subsidiary of Abbott Laboratories, will pay $38 million to settle charges that it offered doctors and other medical professionals and organizations money, free travel, grants, honoria and other goods and services to promote these two drugs. In addition, the government alleged that Kos promoted Advicor for off-label use, specifically as a first-line therapy for management of a disruption of lipids in the blood, which was not approved by the FDA.

Kos agreed to a deferred prosecution agreement, to undertake a thorough internal investigation of misconduct and to cooperate with the DOJ in its ongoing inquiry into the matter.  Kos also agreed to a $3.36 million criminal fine as a condition of the deferred prosecution agreement.

Former employers of Kos served as whistleblowers in this case and they will receive payments of more than $6.4 million from the federal share of the civil recovery.

Read the entire article, “Kos Pharmaceuticals to Pay More Than $41 Million to Resolve Kickback and Off-Label Promotion Allegations.”