BTG unit pleads guilty in U.S. to misbranding, to pay $36 million
- Wall St. gains across sectors ahead of Trump inauguration
- Walgreens Boots Alliance (WBA) Said to Face Antitrust Concern for Rite Aid (RAD) Fix - Bloomberg
- Bristol-Myers Squibb (BMY) Says It Won't Pursue Accelerated U.S. Regulatory Pathway for Opdivo Plus Yervoy in Lung Cancer
- Herbalife (HLF) Says SEC Requested Documents on Anti-Corruption Compliance in China; Reviewed with DoJ
- Investment Focus: History suggests Trump month will be stocks down, dollar up
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
By Jonathan Stempel
(Reuters) - A U.S. unit of British drug company BTG Plc pleaded guilty on Monday to improperly marketing its embolic device LC Bead, and will pay about $36 million to resolve its criminal and civil liability, the U.S. Department of Justice said.
Biocompatibles Inc admitted to a misdemeanor charge of introducing a misbranded medical device into interstate commerce, according to papers filed with the federal court in Washington, D.C.
The West Conshohocken, Pennsylvania-based unit will pay an $8.75 million criminal fine and a $2.25 million criminal forfeiture, plus $25 million to resolve civil claims under the federal False Claims Act, the Justice Department said.
LC Bead is used to treat liver cancer, and had in 2002 won U.S. Food and Drug Administration approval to be placed in blood vessels to block or reduce blood flow to hypervascular tumors and certain malformations.
But in signed court papers, Biocompatibles admitted to having from May 2006 to December 2010 marketed LC Bead as a drug delivery device, after having told the FDA in November 2004 that "under no circumstance" would it do so.
The civil accord also resolved charges that Biocompatibles' distributor promoted LC Bead as providing "better" or "superior" therapy for certain types of cancer despite a lack of medical evidence, and resulted in doctors submitting false claims to Medicare and other federal health care programs.
Ryan Bliss, a whistleblower who oversaw the marketing of Biocompatibles' medical products in North America, will receive about $5.1 million form the civil settlement, his lawyers and the government said.
A lawyer for Biocompatibles did not immediately respond to requests for comment.
(Reporting by Jonathan Stempel in New York; Editing by Bernadette Baum, Bernard Orr)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- ECB probed by watchdog over ties with bankers in G30 group
- Goldman Sachs rejects Indonesian businessman's $1.1 billion claim over share trade
- Cerno hires Tom Milnes as business development director
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!