Pfizer subsidiary guilty of kickback, pays criminal fine

The federal court said the offer had been made in the expectation that the pharmacy benefit manager would promote the company's drug over rival drugs on the market. As a result of its criminal conviction, Pharmacia will be excluded permanently from participation in all federal health care programs.

A pharmacy benefit manager, or PBM as they are commonly referred in the pharmaceutical industry, acts as a middleman between pharmaceutical companies and health insurers. PBMs often recommend pharmaceutical products to health plans.

It is alleged that Pharmacia offered a $12.3 million payment to the PBM and Pharmacia's financial analyses showed that it expected to earn that much or more if the PBM had made the formulary positioning or formulary benefit improvements expected.

Additionally in April, Pharmacia entered into a deferred prosecution agreement with the United States Attorney's Office to settle allegations that it illegally promoted its human growth hormone product, Genotropin, for the “off-label” uses of anti-aging, cosmetic use and athletic performance enhancement. As a result of the criminal plea and deferred prosecution agreement, the company will pay a total of $34.7 million.