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Cephalon Inc.

Frazer, PA: (Jul-31-07) Biotechnology company Cephalon Inc. had a second quarter loss after reserving $56 million for a settlement over alleged illegal marketing for the anticancer drug Trisenox. The controversy involving the drug had earlier cost the company $10.5 million in settlements, but company officials have since put that figure at close to $56 million.

The $56 million settlement reserve stemmed from complaints that Seattle-based Cell Therapeutics marketed the drug for uses that were not approved by the Food and Drug Administration. Cephalon bought the drug from Cell Therapeutics in 2005 and stopped the marketing campaign. The complaint also included allegations of giving doctors kickbacks to prescribe the drug. The company stated that the figure could well exceed that mark as they are expecting claims from the US Attorney's Office, the Office of the Connecticut Attorney General and related claims by other states. [FORBES: TRISENOX MARKETING]

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Published on Aug-1-07


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