Cell Therapeutics

New York, NY: Cell Therapeutics has reached an oral agreement with the US Attorney's Office to pay $10.5 million to end the government's investigation of company practices in marketing the cancer drug Trisenox. The lawsuit that prompted the two and a half year federal investigation was filed under seal by an unidentified person who was apparently a former employee. Cell Therapeutics' only product brought to market, Trisenox, was sold to Cephalon in July, 2005 for $71.9 million, so Cell Therapeutics could finance other drug development efforts.

The US Attorney's Office began investigating whether the company had improperly marketed the drug for unapproved uses. It said investigators were examining Cell Therapeutics' promotion practices, revenue reporting and statements made by company representatives and consultants regarding Medicare reimbursement for off-label uses of Trisenox. Though the identity of the individual who filed the lawsuit hasn't been disclosed, there is reason to believe it is one of Cell Therapeutics' former employees. In its defense, Cell Therapeutics said that the suit included wrongful termination claims. (Jan-23-07) [SEATTLE TIMES: CELL THERAPEUTICS WHISTLEBLOWER]

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