A state university in Iowa has agreed to pay $600,000 to a pharmaceutical company for the production of a controversial drug, a move that highlights how healthcare costs are rising for the poor in the United States.
University of Iowa Hospitals’ Center for Healthcare Innovation has agreed not to sue the pharmaceutical company that made the anti-hive-busting drug called Bupropion for its work on Bupromax.
The agreement with Dr. Joseph Pfeffer came as a result of a lawsuit filed last year in federal court by the Center for Responsible Medicine.
That lawsuit accused Buprofloxacin, which Bupramax is marketed as, of using deceptive advertising, marketing practices, and a lack of due diligence to obtain a license to manufacture and sell the drug.
In September 2016, Bupprollax was approved by the Food and Drug Administration to treat serious and persistent infections such as toxoplasmosis and pneumonia.
But in May 2017, it was revealed that it caused an epidemic of severe, sometimes fatal allergic reactions among the elderly, who were most at risk of developing BuppProllax-related reactions.
Bupprolsyl had been approved by Congress in 2006 and approved by FDA in 2010.
That made it one of the most commonly prescribed drugs on the market, with a rate of 2.5 million prescriptions for adults aged 65 and older in 2015.
The drug, which is the only approved anti-infective to date, has been the subject of several lawsuits.
The company, known as Eli Lilly and Company, sued the Drug Enforcement Administration for withholding information on the effectiveness of Bupreclax and another drug, BUpropax.
That case is pending.
In a statement Thursday, the Center For Responsible Medical Research said Buppropax was “a potent, highly effective and cost-effective drug with proven efficacy and safety.”
“We hope that Dr. Pfeffers findings will inspire other universities and research institutions to look closely at how they use their university research to improve patient care,” the statement said.