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

Data revealed under FOI shows benefits of multiple sclerosis drug currently blocked by regulators

August 17, 2017
A drug that is blocked by the EU regulatory system has now been found to improve the quality of life of people with multiple sclerosis (MS), according to a study by Queen Mary University of London (QMUL).

Opioids overused in migraine treatment, regardless of race, study finds

August 17, 2017
African-Americans are more likely to experience debilitating migraine headaches than whites, but a new study probing the issue found no evidence of racial disparities in treatment practices.

Finding better ways to reduce serious drug side effects

August 14, 2017
Many of the medicines we depend on to treat disease—and even to save our lives—pose potentially serious risks along with their benefits. Data from the U.S. Centers for Disease Control and Prevention indicate that about ...

Ultrasound-triggered liposomes for on-demand, local anesthesia

August 10, 2017
Researchers at Boston Children's Hospital have found a new way to non-invasively relieve pain at local sites in the body; such systems could one day improve pain management by replacing addictive opioids and short-lasting ...

Independent pharmacies and online coupons help patients save money on drugs

August 8, 2017
Uninsured patients or those with limited prescription drug coverage can save significant money by buying their drugs at independent pharmacies instead of big box, grocery or chain drug stores and by using discount coupons, ...

New study generates more accurate estimates of state opioid and heroin fatalities

August 7, 2017
Although opioid and heroin deaths have been rising dramatically in the U.S., the magnitude of the epidemic varies from state to state, as does the relative proportion of opioid vs heroin poisonings. Further complicating 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.