California Insurance Commissioner Ricardo Lara announced that the Department of Insurance reached a $24 million settlement with pharmaceutical giant AbbVie that will require it to change its marketing practices for its immunology drug Humira.
Once a blockbuster sales driver for the company, Humira faced stiff competition from similar drugs on the international market. In the second quarter of 2020, foreign sales of the drug dropped by nearly 20 percent, and U.S. sales did not increase enough to cover that steep drop. Humira is used to treat symptoms of arthritis, Crohn’s disease, ulcerative colitis, plaque psoriasis and ankylosing spondylitis.
The settlement resolves a lawsuit filed in Alameda Superior Court that the state of California brought against AbbVie, alleging that it had violated the Insurance Frauds Prevention Act by failing to disclose critical information to patients and health care providers.