Allergan’s Warner Chilcott Coughs Up $125 Million to Settle Kickback Charges, Former Warner Exec Arrested in Boston

DUBLIN, Oct. 29, 2015 /PRNewswire/ -- Allergan plc (NYSE: AGN), today announced that its indirect subsidiary, Warner Chilcott Sales (US) LLC (“Warner Chilcott Sales”), has reached a resolution with the federal government, as well as 50 states and the District of Columbia, concluding the previously disclosed federal investigation into certain sales and marketing practices involving several Warner Chilcott products during the time period January 2009 through March 2013. In October 2013, Warner Chilcott plc, Warner Chilcott Sales’ indirect parent corporation, became a wholly-owned subsidiary of Actavis plc. In March 2015, Actavis plc completed an acquisition of Allergan plc, and thereafter changed its corporate name to Allergan plc.

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Under the settlement agreements, Warner Chilcott Sales will pay a total of approximately $102 million, plus interest, to the federal government and the states to resolve civil claims. The settlements will resolve claims regarding a range of alleged sales and marketing activities by Warner Chilcott Sales.

In addition to the civil settlement, Warner Chilcott Sales agreed to plead guilty to a charge of health care fraud in violation of 18 U.S.C. § 1347 related to certain of the company’s sales and marketing practices prior to its acquisition by Allergan. In connection with the criminal plea, Warner Chilcott Sales will pay a total of approximately $23 million in criminal fines and forfeiture amounts.

The company previously recorded charges of approximately $125 million in connection with the government’s investigation.

Following its acquisition of Warner Chilcott Sales, Allergan fully cooperated in the government’s investigation and in reaching these civil settlements and plea agreement.

“At Allergan we take seriously our responsibility and commitment to abide by all U.S. and international laws that govern the sales, marketing, education and promotion of our products, and recognize the tremendous impact that this responsibility has on the customers and patients we serve,” said Brent Saunders, President and CEO of Allergan. “Our Company’s culture is deeply rooted in compliance, and we recognize the importance of a strong compliance program. We have focused on developing and implementing a best-in-class set of compliance policies and procedures, and we remain committed to running our business in full compliance with the regulations and high ethical standards we have set for Allergan.”

Allergan maintains an effective compliance program, led by a Global Chief Compliance Officer who reports directly to Mr. Saunders and to the Board of Directors, whose remit includes global health care, anti-bribery/anti-corruption and privacy compliance. The independent Global Compliance Organization is responsible for defining the company’s corporate and business compliance standards, training and educating all employees on these standards, setting the compliance control framework, developing and implementing tools and resources to adhere to and monitor compliance as well as providing assurance services in the form of compliance audits and investigations.

About Allergan

Allergan plc (NYSE: AGN), headquartered in Dublin, Ireland, is a unique, global pharmaceutical company and a leader in a new industry model Growth Pharma. Allergan is focused on developing, manufacturing and commercializing innovative branded pharmaceuticals, high-quality generic and over-the-counter medicines and biologic products for patients around the world.

Allergan markets a portfolio of best-in-class products that provide valuable treatments for the central nervous system, eye care, medical aesthetics, gastroenterology, women’s health, urology, cardiovascular and anti-infective therapeutic categories, and operates the world’s third-largest global generics business, providing patients around the globe with increased access to affordable, high-quality medicines. Allergan is an industry leader in research and development, with one of the broadest development pipelines in the pharmaceutical industry and a leading position in the submission of generic product applications globally.

With commercial operations in approximately 100 countries, Allergan is committed to working with physicians, healthcare providers and patients to deliver innovative and meaningful treatments that help people around the world live longer, healthier lives.

For more information, visit Allergan’s website at www.allergan.com.

Forward-Looking Statements

Statements contained in this press release that refer to future events or other non-historical facts are forward-looking statements that reflect Allergan’s current perspective of existing trends and information as of the date of this release. Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements. Actual results may differ materially from Allergan’s current expectations depending upon a number of factors affecting Allergan’s business. These factors include, among others, the risks associated with acquisition transactions; the difficulty of predicting the timing or outcome of FDA and other regulatory approvals or actions, if any; the impact of competitive products and pricing; market acceptance of and continued demand for Allergan’s products; difficulties or delays in manufacturing; and other risks and uncertainties detailed in Allergan’s periodic public filings with the Securities and Exchange Commission, including but not limited to Allergan’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 (such periodic public filings having been filed under the “Allergan plc” or “Actavis plc” names) and from time to time in Allergan’s other investor communications . Except as expressly required by law, Allergan disclaims any intent or obligation to update these forward-looking statements.

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SOURCE Allergan plc