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Medicis to pay $9.8-million to settle drug allegations

Medicis Pharmaceutical Corp. will pay $9.8-million (U.S.) to settle allegations it promoted the fungicide Loprox for diaper rash even though the drug isn't approved for children younger than 10, the U.S. Justice Department said yesterday. The violations occurred from November, 2001, through April, 2004, the government said. Company whistleblowers made the allegations. The whistleblowers will share $1.1-million, the department said. Medicis did not admit to any wrongdoing. MRX (NYSE) rose 20 cents to $31.41.

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