Vanda inks $11.5M deal to settle off-label drug promotion accusations
Vanda Pharmaceuticals took the FDA to court three separate times this year as it struggles to win over regulators with its sleep and chronic digestive disorder drugs. Now, the company has agreed to drop $11.5 million to settle claims that it illegally promoted the sleep drug and one other off-label.
A suite of investors filed a class action suit against Vanda back in 2019, alleging that the company promoted unapproved uses for its two commercial drugs Fanapt and Hetlioz, the former of which treats schizophrenia in adults and the latter of which is cleared for sleep disruptions in those with Smith-Magenis syndrome and Non-24, a circadian rhythm disorder common in blind patients.
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