Novelion’s Aegerion Unit Resolves Juxtapid Case
A Massachusetts federal judge sentenced Aegerion Pharmaceuticals for improperly marketing its Juxtapid cholesterol drug and ordered that some of the $40.1 million it agreed to pay as part of a plea bargain be divided among some of the company’s victims. A Reuters report says that prosecutors had charged that after FDA approved Juxtapid in 2012 for treating high cholesterol in people with a rare genetic disease, the company promoted the expensive drug for patients who lacked the genetic disease. They said that numerous patients suffered side effects including liver toxicity and gastrointestinal distress.
Federal judge William Young rejected a 11/2017 plea deal saying it restricted his ability to impose a sentence. Under a new arrangement that gave him discretion to determine how much the company should pay, he ordered it to pay $7.2 million of the total $40.1 million to 91 patients who may have been harmed by Aegerion’s conduct. “I think you ought to pay more attention to the actual people who were harmed here,” Young reportedly told a prosecutor.
The judge also said he wanted to receive reports from an independent auditor during Aegerion’s three years on probation. Under the revised plea agreement, the company pleaded guilty to two misdemeanor counts of misbranding Juxtapid. In total the company agreed to pay $36 million to resolve criminal and civil claims by the Justice Department and $4.1 million to resolve a U.S. Securities and Exchange Commission case.