Thursday, October 16, 2014

Merck Pays A "Waifish" $34 Million In Settled Whistleblower Suits -- Regarding Legacy Organon's Remeron® Marketing Tactics

I must note that this too is on Fred Hassan's tab, even if completely immaterial to big Merck, here in 2014. You see, it was Mr. Hassan who acquired Organon in 2007, and folded it into what was then called Schering-Plough. [He, along with Whitehouse Station's Richard Clark, then renamed that company as Merck & Co., in a largely vain effort to avoid a J&J walk-away on Remicade® and later, Simponi®. But you regular readers know that story, already.]

So, in a very real sense, his bad night in the bar, just keeps costing Merck more and more. Here is the Corporate Crime Reporter story -- and a bit:

. . . .Organon will pay $34 million to settle allegations that it underpaid rebates to state Medicaid programs, offered improper financial incentives to nursing home pharmacy companies, promoted its antidepressants for unapproved uses, and misrepresented its drug prices to New York’s Medicaid program.. . .

Have a great weekend away (if you can go) -- I know I will too!


Anonymous said...

Oh, Condor THIS is precious.

No, not the complaint itself but the tidbit about merger code names. Vis a vis:
According to the SEC complaint, Zwerko's company tried to protect confidential information by code-naming merger projects. Its takeover of Idenix was code-named "Project Invincible."

INVINCIBLE you say? Gilead's lawyers will tear that up in the patent suit. Pop the corn!

Condor said...

Oh my. I did see that, and mentioned it as scolding note, yesterday.

But you are certainly right -- I'll write a whole post on it over the weekend: Merck buying a whole company, to become "invincible" on the 10 per cent patent royalty demanded, from Gilead on Sovaldi revenue!

Great catch!

Do stop back -- Namaste!