General Gansler Announces Agreement with Pharmaceutical Manufacturer
MD ( March 19, 2010) - Attorney General Douglas
F. Gansler announced today that Maryland has joined other states
and the federal government to reach an agreement in principle
with pharmaceutical manufacturer, Alpharma Inc., to settle
allegations of causing false or fraudulent claims for the drug
Kadian to be submitted to the Medicaid program. Kadian is a
sustained release morphine sulfate product indicated for the
management of moderate to severe pain. Under the agreement,
Alpharma agreed to pay the participating states and the United
States $42.5 million, plus interest. The Medicaid programs
nationwide will receive approximately $19.2 million of the
total settlement. Maryland will receive $70,013.64. Medicaid
is funded jointly by the federal and state governments.
As part of the federal
and multi-state action, Maryland alleged that during the period
of January 1, 2000 through December 29,
2008, Alpharma offered and paid for training programs, consulting
forums, research grants, speakers’ bureaus and made or disseminated
false statements about the safety and efficacy of Kadian, all of
which was done to induce health care providers to prescribe Kadian.
The investigation was initiated by a lawsuit filed under the
qui tam provisions of the False Claims Act. This action is pending
in the United States District Court for the District of Maryland.
A team representing the National Association of Medicaid Fraud
Control Units participated in the investigation and conducted
settlement negotiations with Alpharma on behalf of the states.
Team members included representatives from South Carolina, Texas,
Florida, Vermont and Arkansas.