Drug Giant Fined Over $2 Billion for Promoting Inappropriate Drug Use

Johnson & Johnson and its subsidiary Janssen Pharmaceuticals have agreed to pay more than $2.2 billion after it was found to be promoting psychiatric drugs for uses unapproved by the FDA.

It’s alleged they paid doctors and pharmacies kickbacks to prescribe and dispense Risperdal and Invega which are anti-psychotic drugs and Natrecor, a heart drug.

From Sky News US:

Attorney General Eric Holder said the US healthcare giant’s conduct “recklessly put at risk” the health of children, dementia patients and others to whom the drug was prescribed at a time it was only approved by the US Food and Drug Administration (FDA) to treat schizophrenia.

Mr Holder said: “These companies lined their pockets at the expense of American taxpayers, patients and the private insurance industry. They drove up costs for everyone in the health care system and negatively impacted the long term solvency of the central health care programmes like Medicare.”

Mr Holder said Janssen’s sales representatives “aggressively” promoted Risperdal to doctors and other prescribers who treated elderly dementia patients.

He also said Janssen targeted nursing home operators through a special “sales force”.

$485 million of the settlement is a criminal fine, and $1.72 billion  is to be paid in civil settlements with the federal government. Janssen will pay out a total of $400 million. Shares in Johnson & Johnson were down 0.6% in afternoon trading.