BEIJING, Nov. 5 (Xinhuanet) -- The U.S. Justice Department says healthcare giant Johnson and Johnson and its subsidiaries have agreed to pay out over 2.2 billion U.S. dollars to settle allegations of illegal drug marketing. 1.72 billion dollars will be used for civil settlements, with around 485 million dollars covering fines and forfeited profits.
The drugmaker was facing criminal and civil allegations that it promoted powerful psychiatric drugs for use with unapproved patients, including children, seniors and the disabled.
"Johnson & Johnson and three of its subsidiaries have agreed to pay more than 2.2 billion U.S. dollars to resolve criminal as well as civil claims that they marketed prescription drugs for uses that were never approved as safe and effective and that they paid kickbacks to both physicians and pharmacies for both prescribing and promoting these drugs," U.S. Attorney General Eric Holder said.
"Through these alleged actions, 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 healthcare system and negatively impacted the long term solvency of the central healthcare programmes like Medicare.
"This global settlement resolves multiple investigations involving the anti-psychotic drugs Risperdal and Invega as well as the heart drug Natrecor and other Johnson & Johnson products."
The deal is the third-largest U.S. settlement involving a drugmaker.
In its plea agreement, Johnson & Johnson subsidiary, Janssen Pharmaceuticals, admitted promoting the drug Risperdal to doctors at nursing homes to control erratic behaviour in elderly patients with dementia. Such use of the drug is explicitly barred, due to a risk of strokes and death.
In a separate civil complaint, both Johnson & Johnson and Janssen Pharmaceuticals were accused of promoting the drug as a way to control behavioural problems in children and the mentally disabled. The drugmaker allegedly downplayed Risperdal’s side effects, while also paying kickbacks to pharmacists to get them recommend the drug.
(Source: CNTV.cn)
