21 October, 2005 18:48 GMT
Serostim is used to treat patients with AIDS wasting, a disorder that causes the loss of muscle, organ tissue and blood cells. The drug costs $21,000 for a 12-week course of treatment.
Serono SA agreed to pay $704 million, the third-largest health fraud settlement in US history, and plead guilty to criminal charges over the promotion of its drug Serostim, used to fight physical wasting caused by AIDS.
The settlement includes a $137 million criminal fine and $567 million in civil suits against Geneva-based Serono, Europe's biggest biotechnology company.
It recoups money paid by Medicaid from 1996 to 2004 as a result of the Swiss drugmaker's illegal activities, US Attorney General Alberto Gonzales said.
Agreed to Plead Guilty
Serono agreed to plead guilty to conspiring with a medical device maker to use a diagnosis that wasn't approved by the US
Food and Drug Administration, the government said. Employees of Geneva-based Serono administered the tests to induce doctors to prescribe Serostim and get Medicaid to pay for it.
Serostim is used to treat patients with AIDS wasting, a disorder that causes the loss of muscle, organ tissue and blood cells. The drug costs $21,000 for a 12-week course of treatment.
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