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Pfizer to pay record $2.3B penalty for unlawful promotions

WASHINGTON — People familiar with a record settlement to be announced today said Pfizer, the world's largest drugmaker, will pay a $2.3 billion civil penalty over unlawful prescription drug promotions.

The U.S. Justice Department plans a news conference later in the day with FBI, federal prosecutors, and Health and Human Services Department officials to announce the terms of the deal. The people discussed the announcement on condition of anonymity because the court filings in the case were still under seal.

In financial filings in January, the company indicated it would pay $2.3 billion over allegations it marketed the pain reliever Bextra and possibly other products for medical conditions different from their approved use.

Use of drugs for so-called "off-label" medical conditions is not uncommon, but drug manufacturers are prohibited from marketing drugs for uses that have not been approved by the Food and Drug Administration.

The settlement is the largest ever paid by a drug company for alleged violations of federal drug rules.

Pfizer spokesman Chris Loder confirmed today the $2.3 billion charge to the company's earnings had been taken in the fourth quarter of 2008.

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