Pfizer had previously announced, as part of the 26 January 2009 DOJ agreement, a corresponding charge of $2.3 billion for the fourth quarter and full year 2008 results. As part of this compensation, no additional charges on the company`s income are recorded. “Pfizer used a third party to impose additional costs on Medicare,” said U.S. Attorney General Andrew E. Lelling. “Following the allegations made in today`s transaction agreement, Pfizer knew that the Pfizer foundation had used money to cover the co-payments of patients taking pfizer drugs, which allowed Pfizer to generate more revenue and conceal the impact of Pfizer`s price increases. Anti-kickback status exists to protect Medicare and the taxpayers who fund it against such programs. At the same time, we commend Pfizer for making progress in addressing these issues responsibly. Under the deal, the largest ever accused by a drug maker accused of marketing misconduct, Pfizer will pay $1.0 billion in civil payments related to a series of drugs, and a $1.3 billion fine for Bextra alone. Pfizer`s publication of payment information is subject to the confidentiality rules contained in clinical research agreements concluded prior to July 1, 2009 with a U.S.-based physician.
Pfizer will not include these confidentiality rules in new or renewed clinical research agreements concluded after the CIA comes into force and requiring payment from a U.S.-based physician. Amy W. Schulman, Pfizer`s Senior Vice President and General Counsel, said, “These agreements provide the definitive conclusion of important legal issues and help us focus on what we do best: discover, develop and deliver innovative drugs to treat patients facing some of the world`s most debilitating diseases.” “These agreements provide the definitive conclusion of important legal issues and help us focus more on what we do best – the discovery, development and delivery of innovative drugs to treat patients facing some of the world`s most debilitating diseases,” said Amy W. Schulman, Pfizer`s senior vice president and general counsel. “We regret some of the steps we have taken in the past, but we are proud of the steps we have taken to strengthen our internal controls and to lead new procedures to not only comply with government and federal laws, but also to meet the high standards that patients, physicians and the public expect from a world leader committed to healing and improving health.