Botox Investigation Settled: Allergan Guilty – Allergan Inc. has agreed to plead guilty to charges that they marketed their most popular product, Botox, for a number of off-label uses. Since the product is a prescription cosmetic product, they had to stay within a number of guidelines within their marketing. They have been asked to pay $600 million to settle with the US government.
The settlement was announced in a press release by the US Department of Justice. They accused the Allergan of promoting the product for uses that the drug was not intended for, including alleviating the symptoms of cerebral palsy, the treatment of headaches and pain. Primarily the product is used to reduce facial wrinkles by paralyzing muscles and nerves in the face.
The company faces a criminal fine of $375 million and will also be paying a $225 million civil settlement with the government. Allergan is also accused of instructing doctors on how to falsify reimbursement claims in order to trick the government into allowing the substance to be used for off-label applications.
The popular product has been a big hit in Hollywood, and is used by many different stars. It will be interesting to see how much of an affect the settlement has on the way that the drug is dealt with by stars and the media. The company admitted to their actions, and decided to submit to the demands of the federal government instead of fighting it.