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.
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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