The Attorney General of Kentucky announced settlements totaling $40 million from Merck and GlaxoSmithKline over unlawful marketing of prescription drugs. The funds will be used to expand drug treatment programs across Kentucky, including constructing a new recovery center, funding scholarships for treatment centers, creating drug-free housing, and treatment grants. A committee was also formed to oversee distribution of the settlement funds.

1. Cracking
Down
on
Unlawful
Rx
Marke5ng
Honorable
Jack
Conway
A;orney
General
Commonwealth
of
Kentucky

2. Required
Disclaimer:
The
Kentucky
Office
of
the
A;orney
General
has
no
financial
rela5onships
with
proprietary
en55es
that
produce
health
care
goods
and
services

3. Learning
Objec5ves:
1. Outline the strategies for effective action against
unlawful Rx drug marketing practices.
2. Identify practices that are considered unlawful for
marketing Rx drugs
3. Evaluate the effectiveness of pursuing cases
against drug manufactures who violate Rx drug
marketing laws.

5. Announced
January
06,
2014

6. Two
Pharmaceu5cal
Se;lements
Merck
Sharp
&
Dohme
Corpora5on
• Vioxx
• $25
million
GlaxoSmithKline
• Avandia
• $15
million

7. Court
Ordered
Distribu5ons
Court
orders
filed
in
both
se;lements
require
that
the
funds
be
spent
on
drug
treatment
programs.

8. Recovery
Center
$500,000
—
construc5on
of
Kentucky
Recovery
Center,
Ashland,
Ky
• 17th
center
in
the
Commonwealth
• Peer-­‐based
recovery
model
• Provide
easier
access
to
treatment
in
the
E.Ky
region

9. Recovery
Ky
Scholarships
$2.52
million
—
scholarships
for
Recovery
Kentucky
Centers
• 30
scholarships
each
year
for
2
years
• 14
operaGonal
Recovery
Kentucky
Centers
• Total:
840
scholarships
over
2
years

10. Drug
Free
Housing
$560,000
—
Create
14
drug-­‐free
homes
• start-­‐up
costs
and
rental
assistance
• for
people
transiGoning
out
of
residenGal
treatment
programs
• Residents
required
to
work
&
remain
drug
free

11. Treatment
Grants
$19
million
—
Grant
program
• expand
treatment
beds
at
exisGng
faciliGes
• create
new
juvenile
treatment
programs
• Residents
required
to
work
&
remain
drug
free.
• hPp://kykidsrecovery.ky.gov/

12. Addi5onal
Distribu5on
• $6
million
to
administer
and
upgrade
KASPER
• $1
million
to
Chrysalis
House
in
Lexington
and
Independence
House
in
Corbin
• $1.5
million
to
UK
to
develop
best
pracGces
for
juvenile
substance
abuse
treatment
providers
• $1
million
to
develop
substance
abuse
screening
tool
with
the
Ky
Dept.
of
EducaGon
to
intervene
with
at-­‐risk
children
• $250,000
to
create
a
database
to
evaluate
outcomes
of
juvenile
treatment

13. SATAC
Substance
Abuse
Treatment
Advisory
Commi;ee
• Created
by
ExecuGve
Order
• Oversee
sePlement
funding
incl.
grant
program
• Chaired
by
APorney
General
Conway

14. Contact
Informa5on
Kentucky
Office
of
the
APorney
General
700
Capital
Avenue,
Suite
118
Frankfort,
Kentucky
40601
Phone:
(502)
696-­‐5641
Fax:
(502)
564-­‐8310
www.ag.ky.gov
aPorney.general@ag.ky.gov