Schering-Plough under investigation

Wednesday, March 14th 2001, 12:00 am
By: News On 6

NEW YORK (AP) _ Schering-Plough Corp., maker of the allergy drugs Claritin and Nasonex, is under scrutiny as part of a criminal probe into the pharmaceuticals industry, The Wall Street Journal reported Wednesday.

The probe is focusing on whether Schering-Plough caused the ``unlawful inflation'' of government reimbursements for certain drugs, the newspaper said.

Investigators also want to know if the company cheated Medicaid on payments designed to ensure the government pays the lowest price for the drugs.

Company spokesman Robert Consalvo told the Journal that Schering-Plough was cooperating with the investigations.

Schering-Plough was recently named in at least 10 class-action lawsuits accusing the company of concealing news of manufacturing problems that delayed the release of Clarinex, an allergy drug.

Federal prosecutors in Boston are looking into criminal violations by a number of drug companies, including Bristol-Myers Squibb Co. and TAP Pharmaceuticals Inc.