Two companies to pay MassHealth $200k for misleading marketing of cancer drug
Two pharmaceutical companies pay more than $200,000 to the state’s Medicaid program, settling claims they provided misleading marketing to physicians and health care providers about the effectiveness of a lung cancer drug, according to Attorney General Maura Healey’s office.
Genentech and OSI Pharmaceuticals, Inc., which was converted to a Delaware limited liability company, OSI Pharmaceuticals, LLC in 2011, manufactured, distributed, and marketed the drug Tarceva from 2006-2011.
The drug, which treats non-small cell lung cancer, was allegedly marketed and promoted to be effective in treating patients who were current or former smokers, according to the AG’s office. The treatment was not approved by the U.S. Food and Drug Administration, nor was there evidence by the company to support these claims, the AG’s office said.
The payment to the state is part of a national settlement that totals more than $67 million to resolve the false claim allegations. The payment also resolves allegations that the companies paid kickbacks to health care professionals as incentive to prescribe the cancer drug.
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