PHARMACEUTICALS

Watson Unit to Pay $2.7 Million to Settle U.S. Claim: Circa Pharmaceuticals Inc. agreed to settle federal charges that it sold untested generic drugs covered by government health programs, the Justice Department said. The settlement stems from an investigation in which the Watson Pharmaceutical Inc. unit, then known as Bolar Pharmaceutical Co., pleaded guilty in 1991 to charges that it submitted false test results to win federal approval for some generic drugs. The latest charges center on allegations that the sale of those improperly tested drugs to patients covered by federal health programs between 1986 and 1991 violated the False Claims Act, the Justice Department said. In the settlement, Circa denied any legal liability but agreed to pay to settle the matter without “the uncertainty and expense of litigation.” Circa said it reserved money for the settlement before its merger with Watson. Shares in Corona, Calif.-based Watson fell 12.5 cents to close at $40.125 on Nasdaq.