Bristol-Myers Squibb - Abilify

Company: Bristol-Myers Squibb
Settlement amount: $515 million
Drug: Abilify
Year: 2007

And finally... There is Bristol-Myers ($BMY) and its bad behavior. Its 2007 settlement covered a number of violations, such as gaming the system to jack up prices on Serzone. But the main focus was Abilify, an atypical antipsychotic in the same class as Eli Lilly's ($LLY) Zyprexa, Johnson & Johnson's ($JNJ) Risperdal and AstraZeneca's ($AZN) Seroquel.


The FDA had approved Abilify for adult schizophrenia and bipolar disorder, but not for children and adolescents, and not for geriatric patients suffering dementia. In fact, the agency explicitly warned against using it for dementia.

So what did BMS do? According to the Justice Department, it zeroed in on child psychiatrists and other pediatric specialists. Then it created a SWAT team to exclusively call on nursing homes, where dementia-related psychosis is more prevalent than schizophrenia or bipolar disorder. When it was found out, the company cooperated with the feds and signed a Corporate Integrity Agreement.

 

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Bristol-Myers Squibb - Abilify