MSD resolves pricing and sales investigations

Merck, Sharp and Dohme (MSD) has announced the conclusion of a civil settlement with federal and state authorities in relation to longstanding investigations regarding disputes over its sales and marketing activities and the calculation of Medicaid rebates.

The firm notes that the relevant sales and marketing activities ended in 2001, while these settlements do not constitute an admission by the company of any wrongdoing or liability.

It adds that its pricing, sales and marketing practices and policies were at the time consistent with all the applicable contracts and regulations.

In the first matter pending in the eastern district of Louisiana, the firm has agreed to pay $250 million (128.5 million pounds) plus interest.

MSD has agreed to pay $399 plus interest in the second matter that was pending in the eastern district of Pennsylvania which includes a Nevada action related to this one.

Bruce Kuhlik, executive vice-president and general counsel of the firm, said that the company is dedicated to the highest standards of ethics and integrity.

“We have taken and will continue to take a leadership position in restoring trust in this industry and in ensuring that our interactions with healthcare professionals support the care of patients and further the public health,” he added.

Last month, president Richard T Clark claimed that the company’s customer focused business model underpinned its positive financial results for the 2007 fiscal year.