April 29, 2010 / 2:37 PM / 9 years ago

UPDATE 1-UCB unit to pay $22 mln in false claims settlement

(adds details of settlement)

WASHINGTON, April 29 (Reuters) - Schwarz Pharma Inc, a unit of Belgium’s UCB SA (UCB.BR), has agreed to pay $22 million to settle false claims allegations about reimbursements for unapproved drugs, the U.S. Justice Department said on Thursday.

The company was accused of failing to advise the U.S. Centers for Medicare and Medicaid Services that two unapproved medicines were not eligible for reimbursement under federal health programs, the department said.

The drugs were Deponit, a skin patch to prevent angina, and Hyoscyamine Sulfate ER, which was used to treat stomach, intestinal and urinary disorders involving cramps, colic and other muscle contractions.

The two medicines never received full U.S. regulatory approval and neither is on the market, the Justice Department said, adding that Schwarz Pharma also allegedly misrepresented the regulatory status of the drugs.

A company representative was not immediately available for comment. (Reporting by Jeremy Pelofsky, editing by Gerald E. McCormick)

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