April 19, 2007
Cell Therapeutics, a Seattle-based biotech start-up, has agreed to pay $10.5 million to settle charges that it illegally marketed the anti-cancer prescription drug Trisonex for uses that had not received approval from the Food & Drug Administration. These off-label uses were reimbursed by Medicare, although the regulations provided that Medicare would only pay for anti-cancer drugs when they were prescribed for FDA-approved uses or uses that were determined to be medically accepted.
The False Claims Act suit was originally filed as a qui tam action by a former Cell Therapeutics employee.
Corporate Crime Reporter ran an article on the settlement on April 18, 2007.