Company News: Novartis

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Novartis and its vaccines/diagnostics division agreed to pay a $72.5-million settlement to resolve off-label marketing allegations involving cystic fibrosis drug TOBI. Novartis and predecessor Chiron Corp., according to a Justice Department statement, allegedly caused false claims to be submitted to the VA and other federal health programs between January 2001 and July 2006 by marketing the inhaled antibiotic for unapproved uses. To resolve their respective claims, the US is receiving $43.5 million and states $29 million. In connection with the qui tam suit, brought under the False Claims Act, three whistleblowers will share $7.825 million.

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