KARENew York (AP) — A Chinese drugmaker has agreed to pay more than $4 billion in damages to a New York man who allegedly paid off $7.5 million in cash to victims of a counterfeit business.
A pharmaceutical firm that makes prescription drugs for erectile dysfunction is selling the little blue pills as a way to get Pfizer, the world’s biggest drugmaker, to other companies, including the US-based drugmaker Pfizer Inc.
“It’s a very complicated business.” Pfizer said on Monday in a statement.
Pfizer said in an email that it has reached an agreement with the makers of the pills, which are based in China, for about $7.5 billion. Pfizer’s profit for the global company is expected to be $3 billion.
It will pay $1.5 billion in damages to victims in a civil suit, Pfizer said.
The case is a result of an investigation by New York state’s attorney general, which was triggered by allegations that Pfizer and another online facilitator, eDrugstore.com, had arranged to sell counterfeit versions of Viagra and Cialis, Viagra and Levitra, the US drug’s active ingredient.
Pfizer said it would pay a total of $7.5 billion to the victims of the drug’s manufacture and sale, with other companies paying the rest. Pfizer will also pay $1.5 billion to victims in a settlement that would add $1 billion to the company’s gross profit.
The case is the latest in a string of company lawsuits by a Chinese group that is accused of colluding to sell counterfeit drugs.
Pfizer has denied the allegations.
The firm was accused of colluding to distribute counterfeit drugs in China to promote its products, including counterfeit Viagra and the counterfeit Cialis. Pfizer said it will pay about $100 million in damages to the victims of the alleged conspiracy.
In 2009, Pfizer said it had received reports of counterfeit Viagra sales in China, and that the Chinese drugmaker was paying out over $1 billion in sales to Pfizer.
The pills were being sold online by eDrugstore, a company that sells both prescription and over-the-counter products. Pfizer said it was “complying with all relevant regulatory and compliance needs.”
The US Food and Drug Administration in March authorized Pfizer to sell the erectile dysfunction drugs at a price of $4 per pill.
Pfizer is accused of conspiring with other online drugmakers to sell counterfeit products for about $3.4 billion in 2012.Pfizer said it was in a civil suit that it will pay about $1.5 billion to the victims of the alleged conspiracy. Pfizer, which is the world’s largest drugmaker, said the suit was related to the sale of fake Viagra, which is being sold by eDrugstore.
Pfizer said it will pay for the civil suit if it is successful in resolving the case.
The US and European drugmakers said they would not comment on the case.
Pfizer on Monday said it has reached an agreement with the makers of the pills, including a Chinese company. The deal with the companies was part of a multi-state effort to create a world-class company that could provide the drugs for consumers. Pfizer said it was also in the process of resolving the case.Pfizer, which is the world’s largest drugmaker, said it was in a civil suit that it will pay about $1 billion in damages to the victims of the alleged conspiracy. The company will pay about $1 billion to the victims of the alleged conspiracy.Pfizer’s global sales of the counterfeit Viagra, Cialis and Levitra will be the largest in the United States, with $3 billion in sales last year. In 2009, Pfizer said it was selling the counterfeit Viagra in the United States for about $4.4 billion.
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