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BASF settles drug probe
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July 29, 1999: 4:41 p.m. ET
U.S. unit of German chemical giant set to pay $41.8M in multi-state settlement
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NEW YORK (CNNfn) - The U.S. drug unit of German chemical giant BASF will pay a $41.8 million settlement to 37 states, ending an investigation over alleged marketing malpractice of its synthetic thyroid hormone replacement drug.
New York State Attorney General Eliot Spitzer announced the settlement Thursday, which ended a three-year investigation into the practices of Knoll Pharmaceutical Co. in its marketing of Synthroid drug.
The 37 states had alleged that Knoll and its parent BASF "violated consumer-protection laws by attempting to prevent the publication of a study showing that some generic drugs were equivalent to Synthroid and were equally effective in treating thyroid disorders," according to a statement issued by Spitzer's office.
Knoll was also accused of falsely claiming that Synthroid was superior to competing brands. "Health professionals and consumers are entitled to receive accurate information about medications," Spitzer said.
A Knoll spokeswoman said the payment would be made within the next 30 "business days" but stressed that neither Knoll or BASF had acknowledged any wrong doing.
The two companies still face a class-action lawsuit, which is scheduled for a further hearing before the end of October (click here for more information).
-- from staff and wires
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