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Illinois-based Astellas to pay $7.3M settlement

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April 16, 2014 04:00 PM EST | AP


NORTHBROOK, Ill. (AP) — The U.S. Justice Department announced Wednesday that an Illinois-based pharmaceutical company will pay $7.3 million to resolve allegations involving the marketing of the drug Mycamine.

Northbrook-based Astellas Pharma US Inc. manufactures and sells Mycamine, which is used to treat invasive fungus infections.

The Justice Department investigated Astellas for alleged off-label promotion of the drug for children between 2005 and 2010. The company has denied the allegation.

The Food and Drug Administration didn't approve the drug for use in children until June 2013.

The federal government will receive $4.2 million and state Medicaid programs will receive $3.1 million.

The company is a subsidiary of Tokyo-based Astellas Pharma.