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

In most surgery patients, length of opioid prescription, number of refills spell highest risk for misuse

January 17, 2018
The possible link between physicians' opioid prescription patterns and subsequent abuse has occupied the attention of a nation in the throes of an opioid crisis looking for ways to stem what experts have dubbed an epidemic. ...

Patients receive most opioids at the doctor's office, not the ER

January 16, 2018
Around the country, state legislatures and hospitals have tightened emergency room prescribing guidelines for opioids to curb the addiction epidemic, but a new USC study shows that approach diverts attention from the main ...

FDA bans use of opioid-containing cough meds by kids

January 12, 2018
(HealthDay)—Trying to put a dent in the ongoing opioid addiction crisis, the U.S. Food and Drug Administration on Thursday slapped strict new restrictions on the use of opioid-containing cold and cough products by kids.

Taking ibuprofen for long periods found to alter human testicular physiology

January 9, 2018
A team of researchers from Denmark and France has found that taking regular doses of the pain reliever ibuprofen over a long period of time can lead to a disorder in men called compensated hypogonadism. In their paper published ...

Nearly one-third of Canadians have used opioids: study

January 9, 2018
Nearly one in three Canadians (29 percent) have used "some form of opioids" in the past five years, according to data released Tuesday as widespread fentanyl overdoses continue to kill.

Growing opioid epidemic forcing more children into foster care

January 8, 2018
The opioid epidemic has become so severe it's considered a national public health emergency. Addiction to prescription painkillers, such as oxycodone and morphine, has contributed to a dramatic rise in overdose deaths and ...

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.