Johnson & Johnson to pay $2.2 bln to end U.S. probes - source

Image
Reuters WASHINGTON
Last Updated : Nov 04 2013 | 10:46 PM IST

By David Ingram

WASHINGTON (Reuters) - Johnson & Johnson will pay $2.2 billion to the U.S. government to end civil and criminal investigations into kickbacks to pharmacists and the marketing of pharmaceuticals for off-label uses, a person familiar with the settlement said on Monday.

The settlement with the company and its subsidiaries covers the marketing of schizophrenia treatment Risperdal and of heart drug Natrecor, said the source, who spoke on condition of anonymity.

Risperdal is sold by J&J unit Janssen Pharmaceuticals Inc, which is expected to plead guilty to misdemeanor allegations of misbranding, the source said.

J&J disclosed in a securities filing in 2011 it had reached an agreement to resolve criminal penalties related to the promotion of Risperdal, a one-time big-selling product for the company, but that certain issues remained open.

Attorney General Eric Holder was scheduled to speak about the settlement at a news conference at the U.S. Justice Department at 11:15 a.m. EST (1615 GMT).

As part of the settlement, Justice Department lawyers filed a civil complaint against J&J in U.S. District Court for the Eastern District of Pennsylvania on Monday. A settlement agreement was expected to be filed as well.

From at least 1999 through 2005, J&J and Janssen promoted Risperdal for such unapproved uses as controlling aggression in elderly dementia patients and treating behavioral disturbances in children, according to the complaint.

The off-label marketing caused U.S. government insurance programs to pay hundreds of millions of dollars for uncovered claims, the complaint said.

(Editing by Howard Goller, Nick Zieminski and Jeffrey Benkoe)

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Nov 04 2013 | 10:29 PM IST

Next Story