Novartis Settles Elidel False Claims Case

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Novartis reportedly has paid over $35 million to settle a whistleblower’s false claims case over off-label marketing of its eczema cream Elidel. Corporate Crime Reporter says that a former Novartis sales representative alleged that he was instructed to tell doctors that Elidel was safe and effective for use on infants. The approved FDA indication is for treating eczema in patients older than age two when conventional therapy is ineffective or not advisable, and only for short-term use. According to the story, animal studies suggested that Elidel could cause skin cancer and non-Hodgkin’s lymphoma and FDA specifically refused to approve it for use on infants younger than 24 months.

The former sales rep also alleged that the company violated federal and state anti-kickback laws by paying doctors to attend lavish dinners and conferences where off-label Elidel uses were advocated.

In 2004, the article says, FDA convened a pediatric drugs advisory committee to study the cancer risk and ended up requiring a Boxed Warning in the drug’s labeling.

The sales rep has received 29% of the money recovered for the federal and state governments through his suit. He also filed a separate Texas case based on the off-label marketing of Elidel because that state has its own whistleblower law. That case was settled for $19 million in damages and fees, bringing the total recovered for federal and state taxpayers to more than $54 million, the article says.

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