FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, MARCH 28, 1996                           (202) 616-2765
                                               TDD (202) 514-1888

                                 
          CIRCA PHARMACEUTICALS PAYS U.S. $2.7 MILLION 
         TO RESOLVE LIABILITY FOR UNTESTED GENERIC DRUGS

     WASHINGTON, D.C. -- Circa Pharmacueticals Inc., which has
paid millions of dollars in fines for violations involving the
manufacturing of generic drugs when it was known as Bolar
Pharmaceuticals Inc., will pay the United States $2.7 million to
resolve allegations it sold untested generic drugs to the
government and to government-funded programs from 1986 through
March 1991, the Department of Justice announced today. 
     Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said the agreement, which settles Circa's civil
liability under the False Claims Act, 31 U.S.C.  3729, and
common law, brings to a total of $13.7 million in fines that
Circa and Bolar have paid for generic drug manufacturing
violations.
     "This settlement underscores the government's commitment to
fight health care fraud of all types," Hunger said.  
     The Department said today's settlement stemmed from a
government investigation that revealed federal violations in
Bolar's generic drug manufacturing program during the 1980's and
involved Bolar's sale of untested generic drugs to such federal
programs as Medicare, Medicaid and components of the Department
of Veterans Affairs.  
     Specifically, Bolar sometimes substituted the brand-name
drug for the generic version when comparing the effectiveness of
brand-name drugs with the generic version, then submitted the
results to the Food and Drug Administration to receive approval
for the generic drug.  
     Bolar also kept a second set of records, known as
"coversheets," to show to FDA inspectors that the drugs were
manufactured according to the FDA's formula when in fact they
were not.      
     In 1991, Bolar pleaded guilty to 21 violations of generic
drug manufacturing and paid $10 million in fines and agreed to
withdraw from the market virtually all generic drugs that had
received FDA approval.  In 1993, Bolar pleaded no contest to one
charge of attempted price-fixing of the generic drug, Dyazide,
and paid a fine of $1 million.
     In addition, several Bolar employees, including its
president, Robert Schulman, pleaded guilty to various criminal
charges relating to Bolar's generic drug programs.  
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