Schering-Plough Settles U.S. Pricing Investigation

Schering-Plough Corp. has reached an agreement with the U.S. Attorney’s Office for the District of Massachusetts and the U.S. Department of Justice to settle the investigation involving the company’s sales, marketing and clinical trial practices and programs.

The agreement resolves the investigation, which began prior to the arrival of the current management team. The agreement provides for a settlement of $435 million, subject to court approval. Under the agreement, Schering Sales Corp., a subsidiary of Schering-Plough, will plead guilty to one count of conspiracy to make false statements to the government and pay a criminal fine of $180 million, and Schering-Plough will pay $255 million to resolve civil aspects of the investigation.

In connection with the settlement, Schering-Plough will also sign an addendum to an existing corporate integrity agreement with the Office of Inspector General (OIG) of the U.S. Department of Health and Human Services (HHS). The addendum will not affect the company’s ongoing business with any customers, including the federal government.