Genentech, OSI Paying $67 mil. for Tarceva False Claims

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The Justice Department says that Genentech and OSI Pharmaceuticals, who are co-promoting the cancer drug Tarceva, have agreed to pay $67 million to resolve a whistleblower’s False Claims Act allegations that they made misleading statements about the drug’s effectiveness. A department statement says the allegations claimed that between 1/2006 and 12/2011 the two companies made misleading representations to doctors and other healthcare providers about Tarceva’s effectiveness to treat certain patients with non-small cell lung cancer when there was little evidence to show that the drug was effective to treat those patients unless they also had never smoked or had a mutation in their epidermal growth factor receptor.

Under terms of the agreement, the federal government will receive $62.6 million and state Medicaid programs will receive $4.4 million. The allegations were in a lawsuit filed in California federal court by a Genentech whistleblower, Brian Shields, who will receive about $10 million, the department says.

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