Roche Agrees To Rocephin Settlement But Denies Liability

Hoffmann-La Roche in the USA has agreed to pay $450,000 to settle claims that it paid grants to doctors to boost sales of its antibiotic Rocephin (ceftriaxone). The company said it has decided to settle with the Department of Health and Human Services and the Justice Department, but has denied any liability in the case.

The US Inspector General has issued a special fraud alert, warning that some drug company marketing and promotional programs may violate the law against kickbacks in Medicare and Medicaid. The IG's office has alleged that from 1986 to 1991, Roche paid grants of $500-$2,500 to doctors for performing small-scale studies on Rocephin. Research requirements were minimal in many cases, and of no scientific value, with many doctors chosen for their ability to recommend the company's products to other doctors or because they could include these drugs on hospital formularies.

The Justice Department declined to prosecute Roche on criminal charges, with the settlement negotiated by the civil division of the Justice Department and the HHS' Inspector General. The IG also said that the company has set up a corporate integrity program.