Spitzer Reaches Settlement With Thyroid Drug Maker

Attorney General Spitzer today announced a multi-state settlement with a major pharmaceutical firm over its marketing practices in the sale of the drug Synthroid, the most commonly prescribed synthetic thyroid hormone replacement medication.

Knoll Pharmaceutical Company of Mount Olive, New Jersey, and its parent company, BASF Corp., of Germany, entered into a settlement with 37 states stemming from the manner in which the companies promoted the use of Synthroid. As part of the settlement, Knoll and BASF have agreed to pay a total of $41.8 million to the 37 states, $2 million of which will be paid to New York.

The Attorneys General involved in the case alleged that Knoll and BASF violated consumer protection laws by attempting to prevent the publication of a study showing that some generic drugs were equivalent to Synthroid and were equally effective in treating thyroid disorders. The Attorneys General also alleged that Knoll falsely claimed that Synthroid was unique or superior to competing brands and that no other brand was equivalent to or as effective as Synthroid in treating thyroid disorders.

"Health professionals and consumers are entitled to receive accurate information about medications," said Spitzer. "This includes information about substitutes that may be equally effective and less expensive. This settlement will encourage pharmaceutical companies to be forthright and open with the public about important scientific findings."

Synthroid is prescribed to treat hypothyroidism, a medical condition in which a person’s thyroid gland does not produce enough thyroid hormone. The common treatment for this condition is the use of a synthetic thyroid replacement drug known as levothyroxine sodium. Over eight million patients in the United States take levothyroxine sodium daily and Synthroid is the leading levothyroxine product on the market.

In announcing the settlement with Knoll, the Attorneys General pointed out that neither the safety nor the effectiveness of Synthroid or any other synthetic thyroid replacement drug was ever an issue. They cautioned that individuals who use these products should continue their current medically recommended treatment regimen and they should discuss any questions they may have with their physician.

Joining New York Attorney General Spitzer in the settlement are the Attorneys General from: Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia and Wisconsin.

The matter was handled by Assistant Attorney General Shirley Stark of the Consumer Frauds Bureau.