Diversified healthcare company Sanofi US (Paris:SAN)(NYSE:SNY) announced on Wednesday the signing of a settlement agreement with the US Attorney's Office, District of Massachusetts, the US Department of Justice and multiple states to resolve all claims arising out of an investigation into sampling of Sanofi's former viscosupplement product, Hyalgan.
Sanofi US, as a part of this settlement, will pay USD109m to the settling parties and expects to enter into a Corporate Integrity Agreement with the Office of the Inspector General of the US Department of Health and Human Services. There are reportedly no criminal charges against the company in connection with this matter.
Prior to the initiation by the government of the investigation that led to this settlement, Sanofi said that it had identified concerns with Hyalgan sampling through the operation of its compliance programme and immediately took strong, proactive and effective steps to address these issues and voluntarily stopped sampling Hyalgan in 2009. This matter has now been resolved within existing financial reserves.
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