Novo Nordisk (NYSE:NVO) said yesterday afternoon that it inked a $58.7 million deal with the U.S. Dept. of Justice to settle an investigation into the company’s marketing practices for Victoza – its Type II diabetes drug.
The agreement settles eight different lawsuits alleging that the drugmaker misled doctors by dressing salespeople as medical educators, paying physicians to prescribe its liraglutide drug and downplaying the medicine’s side effects.
According to the deal, Nordisk is slated to pay $46.5 million to the federal government and to states that reimbursed for Victoza under their Medicaid programs. The company will also pay $12.2 million to settle a complaint filed by the government in federal court on behalf of the FDA.
“At Novo Nordisk, we take our responsibility to communicate the safety and clinical benefits of our medicines seriously, and remain committed to properly addressing safety questions healthcare professionals ask every day,” Doug Langa, president, EVP & head of North America operations, said in prepared remarks.
“Our focus will always be to ensure that those caring for patients have the data they need to make the most informed treatment decision. While we do not agree with the U.S. government’s legal conclusions and deny any wrongdoing, we’re pleased to have negotiated a resolution that allows the company to return its full attention to developing medicines that help improve the lives of patients.”
NVO shares were up 1% in premarket activity this morning.
Last month, the FDA cleared Victoza as the only diabetes drug to reduce the risk of major cardiovascular problems, like heart attack and stroke.