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Oregon gets $2.1 million in Cephalon settlement

12:39 PM PST on Thursday, January 8, 2009

Associated Press

SALEM, Ore. (AP) -- Oregon will receive $2.1 million as part of a $375 million national medical fraud settlement with pharmaceutical manufacturer Cephalon Inc.

The Oregon Department of Justice alleged that Cephalon marketed and promoted three prescription drugs that had not been approved by the U.S. Food and Drug Administration.

The drugs were Actiq, a highly addictive painkiller; Gabritril, an anti-seizure drug; and Provigil, a sleep disorder drug.

The Oregon Medicaid Program will be credited with the state's $2.1 million share of the settlement.

Cephalon also pleaded guilty in federal court to violating the Food, Drug and Cosmetic Act in marketing its drugs for unapproved uses and will pay a fine of $50 million.

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