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* Cephalon says only FDA has oversight of off-label uses

* Insurer says paid for thousands of off-label prescriptions

July 13 (Reuters) – The drugmaker Cephalon Inc has sued

Travelers Cos to stop the insurer from trying to recover

millions of dollars it allegedly paid for off-label uses of

Actiq, a prescription medication to treat pain in cancer

patients.

Cephalon, a unit of Israel’s Teva Pharmaceutical Industries

Ltd, said Travelers has demanded that it reimburse

$17.4 million stemming from the off-label promotion of the drug.

Such promotions involve uses of a drug not approved by

regulators.

While Cephalon settled with U.S. federal and state

regulators in 2008 over similar allegations, it said federal law

entrusts the U.S. Food and Drug Administration with oversight of

off-label promotion and does not give Travelers the right to

bring its own case.

Cephalon said Travelers threatened to sue if its demands

were not addressed by July 13, prompting Cephalon to ask the

federal court in Manhattan to declare that it owes nothing.

Travelers officials could not immediately be reached for

comment.

In a letter attached to Cephalon’s complaint, a Travelers

lawyer claimed the insurer has covered more than 8,400 Actiq

prescriptions for more than 480 non-cancer patients with

maladies including back strain, bone fractures, burns,

concussions, contusions, dislocations, hernias and slipped

discs.

Cephalon, based in Frazer, Pennsylvania, is best known for

its Nuvigil drug to improve wakefulness.

Actiq is the drug Fentanyl, taken by lollipop, and used to

manage pain in cancer patients receiving and tolerant to

around-the-clock opioid therapy.

Lawyers in other cases have alleged that oncologists order

only a small percentage of Actiq prescriptions.

The case is Cephalon Inc v Travelers Cos, U.S. District

Court, Southern District of New York, No. 11-05395.