Par’s Off-Label Plea Deal Includes Clawback For Execs’ Pay In Case Of Future Misconduct

Par will pay $45 million for off-label promotion of Megace ES and enter a corporate integrity agreement that restricts incentive compensation for sales reps; the firm also drops its suit against FDA and removes descriptions of conversations with government officials from its court filings.

In pleading guilty to off-label marketing of its AIDS-wasting drug Megace (megestrol acetate), Par Pharmaceutical entered a corporate integrity agreement that requires executives to forfeit annual performance pay for up to three years if they are discovered to be involved “in any significant misconduct.”

The corporate integrity agreement (CIA) also prohibits the company from providing incentive compensation to sales representatives based on...

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