Wyeth Pharmaceuticals fined $491 million for illegal drug marketing

Wyeth Pharma has pleaded guilty to a criminal misbranding violation and agreed to pay a criminal fine and forfeiture of $491 million

The US Justice Department has said that Wyeth Pharmaceuticals pleaded guilty and agreed to pay $490.9 million for misbranding a drug that prevents the rejection of organ transplants.


The $490.9 million will resolve Wyeth’s criminal and civil liability stemming from the unlawful marketing of the prescription drug Rapamune for uses not approved as safe and effective by the US Food and Drug Administration (USFDA).


Wyeth was accused of training its Rapamune sales force in the US to promote the use of the drug in non-renal organ transplants and encouraged them to offer financial incentives to target all types of transplant patients to boost sales.


In 1999, Wyeth received approval from the FDA for Rapamune use in renal, or kidney, transplant patients. The immunosuppressive drug prevents the body’s immune system from rejecting a transplanted organ. The FDA had not authorised the so-called 'off-label' uses of the drug.


In 2009, US drug maker Pfizer acquired Wyeth.



Ramesh Poapt

4 years ago

Any idea how much Wyeth India will be impacted? or not..

Sensex, Nifty still in a downtrend: Wednesday Closing Report

A close above 5,805 on the Nifty tomorrow may be the first sign that the current downtrend is temporarily over


The market staged a recovery in the post-noon trade Wednesday on buying in IT stock and some heavyweights, but closed flat. The NSE saw a volume of 78.10 crore shares, one of the highest in on a non-expiry day.
The domestic market opened on a weak note on concern about the slowdown in growth as highlighted by the Reserve Bank of India (RBI) in its policy review on Tuesday. The weakening rupee also added to the woes. Markets in Asia were mostly down in morning trade ahead of an announcement from the US Federal Reserve about the future of its stimulus programme.
The Nifty opened 17 points lower at 5,738 and the Sensex started the day 44 points down at 19,304 from its previous close. Selling pressure in realty, PSU, power and banking stocks kept the benchmarks in the negative in early trade.
Meanwhile, Bharti Airtel reported a 9.6% fall in net profit to Rs688.9 crore for the first quarter ended 30 June 2013 compared to Rs762.2 crore in the corresponding period last financial year. This is a 14th consecutive fall in quarterly profits for the telco. Despite the decline, the results were in line with street estimates, helped by better domestic operating performance.
The rupee today breached the 61-mark again by falling 60 paise to 61.07 against the US dollar in early trade on heavy month-end demand for the US currency amid growth concerns. Besides, dollar firming up against other currencies in overseas markets ahead of the US Fed concluding its policy meeting and a weak opening in the domestic equity market, put pressure on the domestic currency.
The market slipped lower in the first hour of trade on the weakening rupee. The decline led the indices to their lows with the Nifty falling to 5,676 and the Sensex hitting 19,127.
Support from IT and some heavyweights like Reliance and Infosys saw the benchmarks bouncing back from the lows and trade in a range-bound manner, albeit still in the red, in the remainder of the morning session.
The market hit its high at around 2.30pm. The Nifty rose to 5,752 and the Sensex went up to 19,388. 
The Sensex hovered on both sides of its previous closing level but the Nifty was flat with a negative bias in the last half hour of trade.  The market settled flat with the Nifty closing down 13 points (0.23%) at 5,742 and the Sensex ending the session at 19,346, shedding 3 points (0.01%).
The broader indices also settled lower. The BSE Mid-cap index fell 0.87% and the BSE Small-cap index fell 0.92%.
BSE Metal (up 2.39%); BSE Teck (up 2.23%); BSE Oil & Gas (up 1.88%); BSE IT (up 1.29%) and BSE Consumer durables (up 1.20%) were among the sectoral gainers. The major losers were BSE Realty (down 2.30%); BSE FMCG (down 2.26%); BSE Bankex (down 1.84%); BSE Power (down 1.67%) and BSE Capital goods (down 0.17%).
Out of the 30 stocks on the Sensex, 16 stocks settled higher. The top gainers were Bharti Airtel (up 7.30%); Dr Reddys Lab (up 4.73%); Hindalco Inds (up 4.34%); Wipro (up 4.18%) and BHEL (up 3.67%). NTPC (down 5.33%); HDFC Bank (down 2.54%); ITC (down 2.52%); HUL (down 1.97%) and Cipla (down 1.87%), were the top losers today.
The top two A Group gainers on the BSE were— Reliance Communications (up 10.14%) and Sun TV Network (up 9.15%).
The top two A Group losers on the BSE were— Strides Arcolab (down 12.97%) and Essar Oil (down 9.96%).
The top two B Group gainers on the BSE were— Murudeshwar Ceramics (up 20%) and AVT Natural Products (up 19.92%).
The top two B Group losers on the BSE were— Precision Wires (down 19.95%) and Super Spinning (down 19.85%).
Of the 50 stocks on the Nifty, 26 ended in the in the green. The top gainers include Bharti Airtel (up 7.51%); Dr Reddys Lab (up 4.67%); BHEL (up 4.36%); Lupin (up 4.35%) and Hindalco Inds (up 4.22%) while DLF (down 6.25%); Axis Bank (down 6.18%); Power Grid (down 5.97%); NTPC (down 5.59%) and Jaiprakash Associates (down 4.24%) were the top losers.
Markets across Asia closed mostly down ahead of the release of US GDP data for the June quarter, which will have a bearing on the Fed’s direction.
The Hang Seng fell 0.32%; the KLSE Composite dropped 1.25%; the Nikkei 225 tanked 1.45%; the Straits Times declined 0.72%; the Seoul Composite lost 0.16% and the Taiwan Weighted declined 0.68%. Bucking the trend, the Shanghai Composite rose 0.19% and the Jakarta Composite added 0.04%.
At the time of writing, the key European markets were trading higher and the US stock futures were flat. 
Back home, foreign institutional investors (FIIs) were net buyers of stocks totalling Rs256.45 crore on Tuesday while domestic institutional investors were net sellers of equities amounting to Rs415 crore.
Promoters of BK Birla group company Kesoram Industries hiked their stake to 49.28% from 27.22% through the recent Rs416 crore rights issue. The total infusion would be around Rs200 crore from the promoters to subscribe to their portion and the additional shares remaining unsubscribed raised the promoter's stake to 49.28%. The stock rose 5.92% to close at Rs56.35 on the NSE.


ShopClues founder Sandeep Aggarwal arrested on insider trading charges

The FBI arrested Sandeep Aggarwal, who received funding from Helion Venture Partners and Nexus Ventures for, on charges of insider trading in his earlier role as a Wall Street analyst

The Federal Bureau of Investigation (FBI) has arrested Sandeep Aggarwal, founder and chief executive of on insider trading charges. Private funds, Helion Venture Partners, Nexus Ventures funded Aggarwal in his latest e-commerce venture.


According to FBI, New York, Aggarwal, while working as a Wall Street analyst, allegedly provided tip about a partnership deal between Microsoft and Yahoo to SAC Capital's then portfolio manager Richard Lee.


Confirming the arrest, the FBI through Twitter said, "Sandeep Aggarwal arrested yesterday by FBI agents in San Jose, CA on insider trading charges. Aggarwal tipped Richard Lee, portfolio manager at #SAC Capital, about pending deal between @Microsoft & @Yahoo."


Recently Aggarwal's, an e-commerce company, raised $10 million from Helion Venture Partners, Nexus Ventures and chief executive Teruhide Sato, reports Iamwire.


According to Securities and Exchange Commission (SEC), Lee's illegal trading based on non-public information (tip given by Aggarwal) helped his hedge fund generate more than $1.5 million in profits. The trading took place before both Microsoft and Yahoo announced their deal and also the acquisition of 3Com Corp by Hewlett Packard (HP), the SEC said in a statement.


The statement says, "Lee thanked the analyst for the 'very specific information' and promptly purchased hundreds of thousands of shares of Yahoo stock in a portfolio that he managed on behalf of S.A.C. Capital.  Lee also purchased shares of Yahoo stock in his personal trading account."


As per the release from the US Attorney's office, on 9 July 2009, Aggarwal learned from a friend, who was an employee of Microsoft about the partnership discussions between Microsoft and Yahoo. Next day, Aggarwal provided this information to two different hedge fund, including Lee. Following this, Lee's hedge fund purchased several hundred thousand shares of Yahoo. Lee himself bought 25,000 shares in Yahoo, the release said.


Last week, Lee pleaded guilty to insider trading charges.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)