Serono discussing
settling investigation over Serostim

Biotechnology company Serono is currently ironing out with federal and state officials the terms of an agreement that would settle investigations into its pricing and marketing practices concerning its HIV wasting drug Serostim, The Wall Street Journal reports. Sources say the agreement would admit wrongdoing by the company and several former employees, and would include payment of about $700 million in fines. The company announced earlier this year that it was hoping to settle the investigations after the U.S. Department of Justice indicted four former Serono executives for bribing doctors to prescribe Serostim to their HIV patients, many of whom would have relied on Medicaid programs to pay the $6,000 monthly price tag for the medication.

Sources familiar with the agreement, which is reportedly almost finalized, say it would contain a federal criminal fine of $145 million, a federal civil fine of $300 million, and an additional $250 million in fines to be split up among states that filed complaints against the company. Four former Serono employees also are expected to get about $70 million for their roles as whistle-blowers in revealing the corrupt practices in marketing and pricing the drug. (Advocate.com)