Reports: Johnson & Johnson to Pay $2.2 Billion to Settle Risperdal Marketing Probe
Posted 11 June 2012 | By
Life science manufacturing giant Johnson & Johnson (J&J) is in the final stages of agreeing with federal prosecutors to pay an estimated $2.2 billion to settle charges of improperly marketing its blockbuster antipsychotic drug Risperdal, reports Bloomberg.
The $2.2 billion sum would, in addition to settling Risperdal claims, also settle litigation regarding the marketing of J&J's schizophrenia drug Invega and congestive heart failure drug Natrecor, reports Reuters.
The US Department of Justice (DOJ) had earlier rejected a proposed $1 billion offer by J&J, claiming the offer was inadequate. Bloomberg reported at the time that DOJ officials were targeting a $1.8 billion settlement as adequate.
The massive settlement would stand second only to a $2.3 billion settlement made by Pfizer primarily over the marketing of its painkiller drug Bextra. Accordingly, the company announced it has added $600 million to its reserves to cover the possible settlement, reports The New York Times.
In addition to a federal lawsuit, J&J still faces a number of smaller lawsuits litigated by state governments which could end up being equally-if not more costly-in the long run. In April 2012, J&J was hit with a $1.2 billion fine in Arkansas, and paid $158 million to settle similar charges with Texas prosecutors in January 2012. Nine other states have also filed suit against the company, with varied levels of success.
Bloomberg Businessweek - J&J Said to Pay $2.2 Billion to End Risperdal Sales Probe
Reuters - Johnson & Johnson plans $600 million charge linked to Risperdal sales
The New York Times - Johnson & Johnson Reserves Funds for SettlementRegulatory Focus - J&J Faces Larger Fine as DOJ Rejects $1B Risperdal Settlement