Novo Nordisk paying $26.7M to end investigations

AP News
Posted: Jun 10, 2011 11:29 AM
Novo Nordisk paying $26.7M to end investigations

Danish drugmaker Novo Nordisk Inc. said Friday it will pay $26.7 million to resolve two investigations by federal authorities into how it marketed its products.

Novo Nordisk said it will pay $25 million to end a U.S. Department of Justice investigation and a civil lawsuit that said the company illegally marketed its drug NovoSeven. The drug is used to treat bleeding in patients who have hemophilia and other severe bleeding disorders, and Novo Nordisk allegedly marketed the drug for indications it hadn't been approved for.

Worldwide sales of the drug totaled $1.43 billion in 2010.

Novo denied wrongdoing in the settlement.

The company also agreed to pay $1.7 million to resolve an investigation by the U.S. Attorney for the Eastern District of New York over how Novo marketed its insulin products.

Novo Nordisk did not admit any wrongdoing in resolving that case.

As part of the settlement, Novo Nordisk's U.S. business will be monitored by the U.S. Department of Health and Human Services for the next five years.

The company's U.S. shares fell 95 cents to $123.39 in midday trading Friday.