Report: J&J will pay $2.2B in Risperdal settlement

July 20, 2012

(AP) — Johnson & Johnson has agreed to pay as much as $2.2 billion to resolve an investigation into its marketing of the anti-psychotic drug Risperdal, according to a published report.

The Wall Street Journal, which reported the settlement Thursday, said the settlement will include a $400 million criminal fine and that the final amount will depend on how many states accept the settlement.

Johnson & Johnson and the U.S. Department of Justice both declined to comment.

The Journal said Johnson & Johnson will disclose the general terms of the in the next few weeks, and that the company will still be allowed to sell its products to Medicare and other government health care programs.

In 2010 the Justice Department joined a whistleblower lawsuit alleging that a Johnson & Johnson division paid tens of millions of dollars in illegal kickbacks to a company that provided prescription drugs to nursing home patients. The lawsuit said Johnson & Johnson made the payments to increase sales of Risperdal, a drug that is used to treat conditions including symptoms of schizophrenia and bipolar disorder. It is linked to increased risk of death for elderly people with dementia.

The drug dispensing company, Omnicare Inc. of Kentucky, agreed to pay $90 million in 2009 to resolve an inquiry into its actions. The government said Johnson & Johnson made illegal payments to Omnicare between 1999 and 2004, and Omnicare's annual sales of Risperdal nearly tripled to $280 million over that period.

It would be one of the biggest drug-marketing settlements ever. GlaxoSmithKline PLC agreed to pay $3 billion this month to resolve an investigation into the marketing of two antidepressants, and Pfizer Inc. agreed in 2009 to pay $2.3 billion to end an investigation into its marketing of drugs including its painkiller Bextra, which was taken off the market in 2005.

The New Brunswick, N.J., company also faces lawsuits alleging it concealed the side effects of Risperdal. A judge in Arkansas fined the about $1.2 billion in April.

Shares of Johnson & Johnson rose 16 cents to $69.53 on Thursday and slipped 10 cents to $69.43 in aftermarket trading.

Explore further: Merck will pay $950M to settle Vioxx investigation

shares

Related Stories

Merck will pay $950M to settle Vioxx investigation

November 22, 2011
(AP) -- The Department of Justice said Tuesday that drugmaker Merck will pay $950 million to resolve investigations into its marketing of the painkiller Vioxx.

Recommended for you

Baby-boomers and millennials more afflicted by the opioid epidemic

November 21, 2017
Baby-boomers, those born between 1947 and 1964, experienced an excess risk of prescription opioid overdose death and heroin overdose death, according to latest research at Columbia University's Mailman School of Public Health. ...

Sensor-equipped pill raises technological, ethical questions

November 17, 2017
The first drug with a sensor embedded in a pill that alerts doctors when patients have taken their medications was approved by the Food and Drug Administration, raiding issues involving privacy, cost, and whether patients ...

New painkillers reduce overdose risk

November 16, 2017
Scientists on the Florida campus of The Scripps Research Institute (TSRI) have developed new opioid pain relievers that reduce pain on par with morphine but do not slow or stop breathing—the cause of opiate overdose.

Separating side effects could hold key for safer opioids

November 16, 2017
Opioid pain relievers can be extremely effective in relieving pain, but can carry a high risk of addiction and ultimately overdose when breathing is suppressed and stops. Scientists have discovered a way to separate these ...

US regulators approve first digital pill to track patients

November 14, 2017
U.S. regulators have approved the first drug with a sensor that alerts doctors when the medication has been taken, offering a new way of monitoring patients but also raising privacy concerns.

Introduction is different, but top medications for opioid addiction equally effective

November 14, 2017
With opioid addiction officially declared a public health emergency in the U.S., medical intervention to treat the illness is increasingly important in responding to the epidemic. Now, a new study concludes that two of the ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.