Pharmaceutical Giant Amgen Settles for $71 Million For Misleading Consumers

Attorney General Peter Kilmartin announced Tuesday Rhode Island will receive approximately $760,000 from the settlement.

“n”>Amgen Inc has reached a $71 million settlement with 48 U.S. states and the District of Columbia to resolve claims that the biotechnology company promoted its popular Enbrel and Aranesp drugs for uses not approved by the federal Food and Drug Administration.

Officials claim Amgen violated consumer protection laws by promoting Aranesp for dosing frequencies longer than the FDA approved label, and for anemia caused by cancer without having FDA approval.

“Promoting drugs for unapproved uses is potentially harmful”, said Acting Attorney General Hoffman, in a statement.

Aranesp is an anemia medication that works by stimulating bone marrow production of red blood cells. Prosecutors said the company tried to convince doctors and patients they would save time if the anemia drug was administered just once a month, a promotion intended to help Aranesp compete with another drug.

Enbrel was Amgen’s top-selling drug in 2014, with $4.69 billion of sales.

As part of the settlement with the states, Amgen didn’t admit any wrongdoing or liability. Enbrel is used to treat a number of conditions, including certain types of plaque psoriasis. “This is an important settlement for New Jersey citizens, not only because it requires a substantial payout by Amgen, but also because it includes injunctive terms designed to protect consumers by preventing similar conduct going forward”. It also pleaded guilty to illegally introducing a misbranded drug, Aranesp, into interstate commerce.

In its statement, Amgen said it is pleased to have the matter resolved and added that it has a strong compliance program.

Amgen shares were down $1.85, or 1.1 percent, at $167.94 in afternoon trading on the Nasdaq.