The Maryland Attorney General's office in conjunction with the federal government and 46 other states has reached a $48 million settlement with a Texas drug company that marketed an ointment to treat bedsores even though it wasn't approved by the Food and Drug Administration.
Healthpoint Ltd and general partner DFB Pharmaceuticals marketed the drug Xenaderm to nursing homes. The ointment was modeled after a drug made prior to 1962 that the FDA never reviewed. In the 1970s, the FDA determined the principal ingredient in Xenaderm was "less than effective."
The drug company's actions caused false claims for the drug to be submitted to the Medicaid program. The health program doesn't reimburse for drugs that are determined ineffective.
The settlement includes $33 million to settle Medicaid based claims nationally. Maryland's Medicaid program will get $345,428.
Healthpoint LTD and DFB Pharmaceuticals could not be reached for comment.
Text BUSINESS to 70701 to get Baltimore Sun Business text alerts
We've upgraded our reader commenting system. Learn more
about the new features.
The Baltimore Sun encourages civil dialogue related to our stories; you must register and log-in to our site in order to participate. We reserve the right to remove any user and to delete comments that violate our Terms of Service
. By commenting, you agree to these terms. Please flag inappropriate comments.