Alkermes Accused of Engaging in Deceptive Marketing Campaign
According to a class action complaint, Alkermes PLC, Inc. (ALKS) represented to investors that the company used “customary pharmaceutical company practices to market our product and to educate physicians.” However, the complaint alleges that Alkermes systemically engaged in deceptive marketing campaigns to influence policymakers to use Vivitrol in addiction treatment programs over more effective alternatives, causing the company’s revenues from Vivitrol to be unsustainable. On June 11, 2017, The New York Times published an article describing Alkermes’ aggressive efforts to market Vivitrol while denigrating the efficacy of other addiction treatments, noting that no study had been completed comparing Vivitrol with its less expensive competitors. Then, on November 6, 2017, U.S. Senator Kamala Harris announced the opening of an investigation into Alkermes’ sales practices for Vivitrol, stating that Alkermes used paid doctors to promote the drug. Since allegations of Alkermes’ deceptive marketing campaign became public, the company’s stock has declined over 9%.