Pharmaceutical Co. ISTA Pleads In NY Federal Case

BUFFALO, N.Y. (AP) – Drug-maker ISTA Pharmaceuticals has pleaded guilty in New York in a federal case involving its eye drug Xibrom and has agreed to pay more than $30 million.

The Department of Justice says the case was settled in U.S. District Court in Buffalo on Friday.

Irvine, Calif.-based ISTA was acquired by Rochester, N.Y.-based Bausch & Lomb Inc. last year. It admits promoting Xibrom for uses beyond what the Food and Drug Administration approved.

It also pleaded guilty to violating anti-kickback statutes by sponsoring various events hoping to persuade doctors to prescribe Xibrom, an anti-inflammatory approved by the FDA to treat pain and inflammation after cataract surgery. It has agreed to pay $33.5 million in fines and fees.

Bausch & Lomb says the conduct took place from 2006 to 2011 and it’s cooperated in the investigation.