Thyroid Drug Maker Agrees to Settle Suits

A pharmaceutical company has agreed to pay up to $135 million to settle allegations it suppressed research showing that its prescription thyroid drug is no better than cheaper alternatives. As many as 8 million consumers who paid two to three times more for Synthroid are eligible, plaintiffs’ attorney Allan Kanner said. Knoll Pharmaceutical Co., a Mount Olive, N.J.-based subsidiary of BASF Corp. in Germany, admitted no wrongdoing under the settlement, which was reached Aug. 1 and is subject to approval by a federal judge. In a statement, Knoll President Carter Eckert said he agreed to settle to avoid a costly legal battle. In April, the Journal of the American Medical Assn. published a study, commissioned by Knoll, that concluded that Synthroid--a synthetic thyroid hormone--is no better than two generic alternatives or the brand-name drug Levoxyl. Knoll disagreed with the study, and considered suing to stop its publication. Betty Dong, the researcher at UC San Francisco who conducted the study, told the journal that Knoll had suppressed her findings for more than six years. Under the settlement, Knoll will contribute $98 million to a fund to pay plaintiffs in about 60 lawsuits filed nationwide. If more than 5 million users apply for reimbursement, the company will pay up to $135 million.