The Government Has A Record Year Seeking Justice For Wrongful Conduct by the Drug Industry
Yesterday, the United States Department of Justice announced that it had recovered $3 Billion in fiscal year 2010 against those companies and individuals who had defrauded our government. These recoveries involved claims for all types of fraud against our government, including military contracts, non-military contracts, federally-insured mortgages, and mineral leases, among others. It is a welcome relief to see our government act to pursue those who steal from all of us. In addition to the record amount recovered, it is also interesting to note that the largest single area of fraud against our government involves the health care industry. According to the government's announcement and an NPR article involving this issue, $2.5 Billion of the $3 Billion recovered, involves the actions of big pharmaceutical companies.
I have written previously about the long FDA saga with Avandia as well as the manufacturer's apparent concealment of adverse studies involving the health risks of that drug. I have also written about the deceptive marketing practices involving the use of shoulder pain pumps.
We are now in the middle of discovering the extent of damage caused by DePuy's defective hip replacements. DePuy, a Johnson & Johnson subsidiary, sold over 90,000 of these implants, including a large number here in North Alabama. As the full extent of damage from DePuy's defective implant comes to light, it is important to remember that DePuy has previously been the subject of probes involving the practice of paying kickbacks to physicians in an effort to implant its products into patients.
According to the government's report, this year's false claims actions involved companies such as Pfizer over its promotion of the painkiller Bextra, Astra Zeneca over the anti-psychotic drug Seroquel, and Novartis. I applaud the efforts of the Department of Justice to pursue issues of fraud against our government, including fraud and abuse concerning drugs and medical devices. However, the government needs to act during the approval and review process so that the interest of the public is protected, from the beginning. While recovering taxpayer funds is great, it is too late at that point for the people actually harmed by dangerous and defective products.
