Schering-Plough Subpoenas Issued
TRENTON, N.J. (AP) _ A U.S. attorney began issuing grand jury subpoenas this month for an investigation into Schering-Plough Corp.’s pricing practices, according to the company’s annual report.
The investigation focuses on whether the drug maker provided free or discounted pharmaceuticals to managed care plans to ensure its products were on a list of drugs for which the company would be reimbursed.
The probe began in 1999, when the U.S. attorney’s office for the eastern district of Pennsylvania subpoenaed the company to determine if its contracts with HMOs and drug benefit managers complied with federal laws. The office was trying to determine if the contracts should have been used to calculate government rebates.
Schering-Plough, based in Kenilworth, N.J., makes the allergy drug Claritin. The company filed its annual report Friday with the Securities and Exchange Commission.
Schering-Plough spokesman William O’Donnell said the company would have no comment beyond what is contained in the annual report.
On the Net: