CareFusion will pay $41M to settle federal probe

CareFusion is working to settle a federal probe over ChloraPrep.--Courtesy of CareFusion

CareFusion ($CFN) is close to getting out from under federal investigators, saying it expects to pay about $41 million to settle allegations that it mismarketed a clinical skin prep product.

The feds have been investigating CareFusion's sales and marketing practices of ChloraPrep since 2011, the company said, examining how marketers pitch the pre-injection product to physicians.

Now the company says it has entered into a non-prosecution agreement with the government, expecting to pay the settlement in the third quarter. However, the dollar amount and timing of the payment could change depending on the final settlement agreement, CareFusion said.

"We are pleased to have reached this important milestone as we continue to build our foundation for future growth," CEO Kieran Gallahue said in a statement. "Since our spinoff (in 2009), we have made significant investments to improve our quality systems, including our sales and marketing practices, and we remain committed to adhering to the highest standards."

CareFusion pulled in $144 million from its infection prevention business last quarter, a 4% jump that helped fuel 2% company-wide growth.

However, sales for infusion pumps and dispensers--the company's largest units--stayed flat as CareFusion has grappled with recalls over the past 12 months. Most recently, the FDA assigned its most-serious Class I tag to CareFusion's recall of some Alaris infusion pumps, warning that a device communication error could harm patients.

- read the announcement

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