The Fierce Pharma web site, citing an earlier Wall Street Journal article, reports that the 12-year ban from government programmes levied on former Purdue chief executive Michael Friedman, general counsel Howard Udell and chief scientific officer Paul Goldenheim stemmed from a 2007 government case over the marketing of new drug OxyContin.
Guilty pleas
The case was settled for $634.5 million, with each of the three executives pleading guilty to one misdemeanour count of misbranding a pharmaceutical -- but they did not admit wrongdoing.
However, the three men were held responsible for the company based on their positions, and the US Department of Health and Human Services sought a heavy ban to deter others. The executives claimed the ban violated their constitutional rights, but the appeals court agreed with the government’s position.
Judge Douglas Ginsburg wrote: ‘Surely the government constitutionally may refuse to deal further with senior corporate officers who could have but failed to prevent a fraud against the government on their watch.’
Email your news and story ideas to: [email protected]
