Record Pfizer Settlement for $2.3 Billion - Tip of the Iceberg?

The morning of the announcement of the $2.3 billion Pfizer settlement, a few hours before the seal was lifted, we received an emailed NY Times article about a pharmaceutical company's plans for off label marketing of a major anti depressant.

The seal was lifted, and the Department of Justice issued its press release at 10:30 AM. Congratulations poored in; reporters called; interviews were given. At about 4:00 PM, commentators began to point out that pharmaceutical manufacturers view settlements like Pfizer's as merely a "cost of doing business," and the financial penalty akin to "hitting a mule with a 2x4." KEMY agrees that the recoveries to date for off label marketing are probably the tip of the iceberg. Off label marketing of drugs is big business, and big pharma reaps immense profits from off label prescriptions.

KEMY is well aware that pharmaceutical manufacturers continue to engage in off label marketing of drugs, with serious ramifications. In addition to the misspent public dollars for Medicaid and Medicare reimbursements, off label prescriptions raise grave safety concerns. For example, sales reps targeted kids for prescriptions of Geodon, and many parents blindly followed their doctors' recommendations to put their children on the drug. Sadly, the situation is not unusual. We know of people who have died and kids who are suffering because they were the unfortunate victims of an off label marketing campaign.

The Pfizer settlement is particularly gratifying because it raises awareness about the often overlooked mental health population. The public continues to stigmatize those with mental health issues, and one of the by products of this stigmatization is poor health care. Pills are pushed on very vulnerable people who are often desperate to feel better. Many of these same folks receive Medicare or Medicaid, so public dollars and personal safety are at considerable risk. KEMY is very proud to have worked with the government to address this important aspect of health care.