Allergan, the pharmaceutical manufacturer and the maker of Botox, settled the charges pressed against it for illegal marketing. The cases have cooled down for the meanwhile, with Allergan paying $600 million. Currently, the Company would wait for the federal investigations to be completed.
After examinations, the Food and Drug Administration (FDA) proved that Allergan has been promoting their product Botox for unapproved usages, claiming that it can be used for treating headache, pain, spasticity and juvenile cerebral palsy. All of these conditions have not been included in the drug proposal addressed to the FDA.
Allergan pleaded guilty of the charges and admitted to the illegal promotion of Botox. It made an announcement saying that in the duration between 2000 and 2005, the Company has been using the newly found information regarding Botox’s ability to heal neck and wrist spasms, and to reduce the eye muscle strains and excessive arm sweating.
After the settlement, Allergan would have to pay $375 million criminal fines and a civil settlement of $225 million.
In a press conference, Douglas S. Ingram, the Executive Vice President of Allergan, SAID, "This settlement is in the best interest of our stockholders as it resolves all matters at issue in the investigation, avoids substantial costs of litigation, as well as the substantial risks to Allergan associated with government enforcement action in these matters”.












