Abbott Labs: US Justice Department Probing Depakote Marketing
By Peter Loftus, Of DOW JONES NEWSWIRES
The U.S. Justice Department is investigating Abbott Laboratories' (ABT) sales
and marketing activities for its anti-seizure drug Depakote, the drug maker
disclosed Friday.
Abbott said in a regulatory filing that the U.S. Attorney for the Western
District of Virginia is seeking to determine whether Abbott's marketing
activities violated civil or criminal laws including the Federal False Claims
Act, the Food and Drug Cosmetic Act, and the Anti-Kickback Statute "in
connection with Medicare and/or Medicaid reimbursement to third parties."
Abbott spokeswoman Adelle Infante said the Abbott Park, Ill., company is
cooperating with the investigation, but declined further comment.
A spokesman for the U.S. Attorney in the Western District of Virginia couldn't
immediately be reached.
Depakote is approved to treat bipolar disorder and seizures and to prevent
migraines. Sales declined 70% to $354 million for the first nine months of 2009
due to generic competition.
Abbott shares fell 22 cents, or 0.4%, to $51.40 in recent trading.
-By Peter Loftus, Dow Jones Newswires; 215-656-8289; peter.loftus@dowjones.com
By Corey Boles Of DOW JONES NEWSWIRESWASHINGTON -(Dow Jones)- President Barack Obama signed into law Friday
legislation extending federal jobless benefits by up to 20 weeks on the same day
the bleak employment picture was confirmed by another jump in the national
unemployment rate. The U.S. Department of Labor said October's unemployment rate jumped to 10.2%
from 9.8% in September as the economy shed another 190,000 jobs. Economists had expected the rate to increase, but the fact that nationally
more than 1 in 10 people who are looking for work don't have a job is further
evidence the economy has a long way to go before the effects of the recession
have retreated. The U.S. economy grew 3.5% in the third quarter, signaling a formal end to the
deepest recession in 70 years, but the job market continues to worsen. Long-term unemployed people in many states now can qualify for up to 99 weeks
of benefits when combining federal and state assistance. Obama was scheduled to speak at 11:30 a.m. EST, when he is expected to address
the economy. Jobless people living in all 50 states will get an additional 14 weeks federal
assistance, while jobless people in states with a three-month average
unemployment rate of at least 8.5% will receive a further six weeks of benefits. The measure will affect only those who already exhausted their unemployment
benefits or will do so by the end of the year. The legislation also extends a popular $8,000 first-time home-buyer tax credit
into next year and creates a new credit for existing property owners who buy a
new home. Both credits are available on purchases agreed to through April 2010,
with contracts completed by the end of next June. Income limits apply on both
credits. A tax credit allowing big businesses to write off some of the losses they
incurred against profits earned in earlier years was also included in the
legislation. -By Corey Boles, Dow Jones Newswires; 202-862-6601; corey.boles@dowjones.com
(END) Dow Jones Newswires
11-06-091133ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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