Delaware Nets $4.2 Million Settlement from Johnson & Johnson Subsidiary
Delaware will net a $4.2 million settlement as part of a $131 million multi-state settlement with Janssen Pharmaceuticals, a subsidiary of Johnson and Johnson (NYSE: JNJ), it was revelaed late on Thursday. The settlement stems from the off-label sales of Risperdal and Invega, antipsychotic drugs.
According to a statement on the Delaware Online website, Attorney General Beau Biden said the deal is the largest multistate consumer protection pharmaceutical settlement.
“Marketing drugs for uses that are not FDA approved is an unacceptable threat to the health and well-being of Delawareans,” Biden said. “The changes we have secured to this company's marketing practices, along with the significant financial impact, will help protect the public.”
On August 3, Benzinga reported that Johnson & Johnson (NYSE: JNJ) and the Department of Justice had reached an agreement in principle to the illegal marketing practices of antipsychotic drug Risperdal.
Risperdal had been Johnson & Johnson's top-selling drug with $2.2 billion in sales in 2007, the year prior to its patent expiration. The medicine treats the symptoms of mental illnesses such as schizophrenia, bipolar disorder, mania and irritability in autistic patients.
The point of contention that prosecutors claim was the marketing of Risperdal as prescribed to control anxiety among patients with dementia and Alzheimer's disease, both of which are unapproved uses.
As part of the settlement, Johnson & Johnson has agreed to not promote the drugs for off-label uses or make false claims about their benefits.
While the financial aspect of the settlement will be attractive to Delaware and everyone else that benefits, the important thing here is that Johnson & Johnson is being prohibited from making false claims about drugs. People really should be able to trust what they read from official sources about something which they believe is going to help them. Lives could very well be improved because of this settlement, and that fact is worth a lot more than $4.2 million.
On Friday morning, Johnson & Johnson traded at about $67.20, down roughly 0.25 percent.
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