Johnson & Johnson Fined $2.2 Billion for Reckless Drug Distribution
Posted on November 19, 2013 by Cal Warriner
One has to wonder how this will play with stockholders. Johnson & Johnson, the healthcare giant, has agreed to pay more than $2.2 billion to settle criminal charges over the marketing of its antipsychotic drug, Risperdal. The company’s Janssen Pharmaceuticals division is accused of marketing the drug to treat elderly patients with dementia, children and the disabled.
This case, brought by the Department of Justice, is a big win for American patients.
Risperdal was approved 20 years ago by the U.S. Food and Drug Administration (FDA) for managing psychotic disorders, not to keep the elderly subdued or children quiet.
J&J marketed Risperdal for unapproved uses from 1999 through 2005. And it had help. Omnicare, which dispenses drugs to nursing homes, billed the government for the unapproved drugs, and received kickbacks from Risperdal sales reps to prescribe the drug as well as another antipsychotic, Invega (for the treatment of schizophrenia) and Natrecor, a heart drug, according to a report in Bloomberg.
- Johnson & Johnson illegally paid doctors and pharmacies kickbacks to promote prescription drugs for “unapproved uses” (undergroundhealth.com)
- Johnson & Johnson to Settle Risperdal Improper Marketing Case (nytimes.com)
- Johnson & Johnson to pay $2B to settle psychiatric drug charges (newsday.com)
- Johnson & Johnson fined $2.2 billion for faulty drug claims (abc.net.au)
- Johnson & Johnson To Pay $2.2 Billion To Settle Deceptive Marketing Claims (consumerist.com)
- Johnson & Johnson fined $2.2bn to settle drug cases (onntimes.com)
- Johnson & Johnson pleads guilty to fraud (thehindu.com)
- Johnson & Johnson Will Pay $2.2B Over Kickbacks (newser.com)
- Johnson & Johnson to pay $2.2B in health care fraud settlement (cbsnews.com)
- DOJ: Johnson & Johnson agrees to pay $2.2B (abqjournal.com)