J&J (JNJ) Close to Mult-Billion Dollar Settlement Over Illegal Anitpsychotic Drug Marketing
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Johnson & Johnson (NYSE: JNJ) might soon settle litigation related to the marketing of one of its most popular drugs, Risperdal, for the treatment of schizophrenia. The Justice Department's claims suggest J&J may have illegally went beyond FDA regulation in an attempt to promote the product for unintended uses.
The latest rumor is for a settlement in the $1.5 billion to $2.0 billion range, according to several sources. In addition, J&J might be subject to paying penalties in each state the drug was sold, which could add a substantial amount to the total.
Reuters pointed out doctors are free to prescribe whatever medication they see fit for a treatment, but drug companies are limited on the scope of promotion they can pursue.
As the company announced last month it would take a $600 million one-time charge for any pending settlements (in addition to a $1.1 billion charge taken in the fourth quarter of last year), shares of J&J are largely unchanged in early trading Thursday.
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The latest rumor is for a settlement in the $1.5 billion to $2.0 billion range, according to several sources. In addition, J&J might be subject to paying penalties in each state the drug was sold, which could add a substantial amount to the total.
Reuters pointed out doctors are free to prescribe whatever medication they see fit for a treatment, but drug companies are limited on the scope of promotion they can pursue.
As the company announced last month it would take a $600 million one-time charge for any pending settlements (in addition to a $1.1 billion charge taken in the fourth quarter of last year), shares of J&J are largely unchanged in early trading Thursday.
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Risperdal reproached
Daniel Haszard on Jun 21, 2012 08:54 AMMark as Spam | Reply to this comment
Reg; J& J Risperdal scandal fine
Thank you for reporting this breaking news,the atypical antipsychotic drug promoters are ‘reaping the whirlwind’.My case was with Eli Lilly Zyprexa same saga.
Four years of off-label Zyprexa use gave me life-long diabetes.-Daniel Haszard
FMI http://www.zyprexa-victims.com
(Risperdal is cousin of Zyprexa except that J&J is not getting any mercy because of association with family care products.)