Scientist admits selling formulas Trade secrets were sold to a competing firm.

October 25, 1991|By Kelly Gilbert | Kelly Gilbert,Evening Sun Staff

A former Parke-Davis Co. senior research scientist has pleaded guilty to a federal conspiracy charge for selling formulas and trade secret manufacturing information to an official of a competing generic drug company.

John E. Botzolakis, 38, of Randolph, N.J., entered his plea this week to Judge John R. Hargrove in U.S. District Court in Baltimore. He is the 28th criminal defendant to be charged here in a long-running federal investigation of the generic drug industry.

Prosecutor Raymond A. Bonner said Botzolakis sold confidential information on Parke-Davis' Prazepam, an anxiety control drug, and Erythromycin, an antibiotic, to Sanyasi R. Kalidindi, an American Therapeutics Inc. vice president, in the summer of 1987.

ATI used the stolen formulas and manufacturing information to make its own generic versions of the drugs, and quickly applied to the U.S. Food and Drug Administration for permission to sell them on the open market.

The speedy applications would have saved ATI substantial time and money in developing generic substitutes for the drugs, and a substantial marketing advantage over competing drug companies. But ATI withdrew the applications in 1989 after the FDA said the drugs were technically faulty.

Bonner said that Kalidindi paid Botzolakis $14,000 for the stolen information, and that Botzolakis was to get another $15,000 when ATI got FDA approval to market its antibiotic.

Kalidindi pleaded guilty Sept. 29 to a false statements charge tied to corruption in ATI's antibiotic application to the FDA.

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