US Pharmaceutical Companies to Pay $67Mln Over False Cancer Drug Claims

US pharmaceutical companies Genentech Inc. and OSI Pharmaceuticals LLC will pay $67 million to settle claims that they made misleading statements about the effectiveness of the drug Tarceva to treat lung cancer, the US Department of Justice said in a statement.

WASHINGTON (Sputnik) — The US government will receive $62.6 million of the settlement money, while state Medicaid programs will receive $4.4 million, the statement noted.

"Pharmaceutical companies have a responsibility to provide accurate information to patients and health care providers about their prescription drugs," Justice Department Principal Deputy Assistant Attorney General Benjamin Mizer said on Monday. "The Department of Justice will hold those companies accountable that mislead the public about the efficacy of their products."

The companies are accused of knowingly misrepresenting Tarceva’s effectiveness to doctors and other healthcare providers between 2006 and 2011.

Despite their claims, the Justice Department explained there was little evidence the drug would be effective in treating non-small cell lung cancer unless patients had never smoked or had a certain epidermal mutation that caused cancer cells to spread.