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news.Cell Therapeutics has paid $10.5 million to settle government claims regarding allegations that the company engaged in illegal marketing practices with the anticancer drug Trisenox.
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As part of the settlement, Cell Therapeutics has been released from liability for the issues under investigation, including the claims asserted in the lawsuit.
The claims, which had been under investigation since August 2004, relate to prescriptions written by physicians for certain off-label uses of the drug Trisenox. Cell Therapeutics transferred all rights to Trisenox to Cephalon in July 2005.
The lawsuit alleged that Cell Therapeutics paid doctors to prescribe the drug and gave out consulting fees of $500 to $1,000 to doctors to attend events discussing the off-label uses of the drug.
The company had already taken a charge in the fourth quarter of 2006 for an agreement with the government about the investigation into Trisenox promotional practices.
Cell Therapeutics said resolution of these claims will allow it to focus on developing drugs for cancer patients. The company has two cancer drugs in late stage trials.