November 30, 2007
Jefferson City, Mo. — Attorney General Jay Nixon has recovered more than $125,000 for the Medicaid program through a settlement with drug manufacturer Medicis. The agreement with Nixon, other state Attorneys General and the U.S. Department of Justice resolves their concerns that Medicis improperly engaged in off-label marketing of the topical drug Loprox.
Pharmaceutical companies are not allowed to market their drugs for purposes not approved by the Food and Drug Administration. In this instance, the FDA approved the use of Loprox in treating fungal skin infections among those over the age of 10, but the company allegedly marketed it for use in treating diaper rash and other skin disorders for children under the age of 10.
In addition to the money paid to Missouri, the other states and the federal government, Medicis also has entered into a Corporate Integrity Agreement with the Office of Inspector General, U.S. Department of Health and Human Services to ensure future compliance with the law. The company is based in Scottsdale, Ariz.
The case was brought by the Medicaid Fraud Control Unit of the Attorney General’s Office. Nixon established the unit in 1994. The unit has authority under state law to investigate and prosecute, both civilly and criminally, allegations of fraud against Missouri’s Medicaid program.