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Johnson & Johnson Message Board

  • voyvik11 voyvik11 May 12, 2011 3:44 PM Flag

    WSJ reports Feds want $1 Billion for Risperdal Marketing tactics

    Federal prosecutors are seeking roughly $1 billion to resolve a long-running probe into Johnson & Johnson's marketing of the antipsychotic drug Risperdal, according to people familiar with the matter.

    Since 2004, the federal government has been investigating whether J&J's Janssen Pharmaceutica unit improperly promoted Risperdal for unapproved uses, J&J has said in filings with the Securities and Exchange Commission. In its latest filing Tuesday, the New Brunswick, N.J., company said it had set aside an unspecified sum to settle potential civil and criminal charges.

    J&J said its discussions with the government "are ongoing and it is inappropriate to speculate." Spokespeople for federal prosecutors in Philadelphia and Washington, D.C., said they don't comment on such matters.

    A settlement of around $1 billion would be among the industry's largest, and likely have a material impact on J&J's quarterly financial results. The sum could shrink, however, or ongoing talks could break down, people familiar with the matter emphasized. But prosecutors are pushing J&J to reach a settlement soon, one such person said.

    Officials at J&J were surprised at the size of the sum that prosecutors are seeking, according to the people familiar with the matter. Prosecutors have been citing as a benchmark a $1.4 billion settlement that Eli Lilly & Co. reached in 2009 to resolve a probe into alleged improper marketing of its antipsychotic drug Zyprexa, according to one of the people. Lilly's alleged misconduct was in some ways different, however, taking place over a longer period of time, this person said.

    Under federal law, companies can't market medicines for uses other than described on their labels, though doctors can prescribe drugs for unapproved uses. In 2009, Pfizer Inc. reached the pharmaceutical industry's biggest settlement, agreeing to pay $2.3 billion to resolve an investigation into the marketing of now-withdrawn painkiller Bextra.

    Risperdal had been one of J&J's best-selling drugs with more than $2.2 billion in U.S. sales in 2007, before the U.S. patent on the pill expired. J&J had $61.6 billion in sales last year.

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    • Well, you are entitled to your feeble opinion... Check this out....In 1952 and 1953, the U.S. experienced an outbreak of 58,000 and 35,000 polio cases, respectively, up from a typical number of some 20,000 a year. Amid this U.S. polio epidemic, millions of dollars were invested in finding and marketing a polio vaccine by commercial interests, including Lederle Laboratories in New York under the direction of H. R. Cox. Also working at Lederle was Polish-born virologist and immunologist Hilary Koprowski, who claims to have created the first successful polio vaccine,........ NOW SALK did develop the first polio vaccine, but the point is that America's pharmaceutical companies DID invest many MILLIONS OF dollars in the quest of developing this VACCINNE...

      And by way of education.... ONE of TEN synthesized medications makes it to market....... All of the ones that fail have to be paid for by the ones that make it. So, If MY company spends $500 Million to develop a drug and it doesn't make it, where do we get the money to pay for it???

    • Jesus you are pitiful. "Medications for polio". The Salk institute did that with government funds you idiot. AND its not a "medication" its a vaccine! You work in the pharma sector and you say crap like that? I can tell you're a 30 year moron with this company. You act like you are doing the world a favor when you are making billions upon billions of dollars.

      Get a clue. The feds wouldn't be chasing you around if you weren't acting like greedy idiots and putting out products that are tainted. Get a life.

    • WE ALL AGREE... IT'S FEDERAL GOVERNMENT EXTORTION. In case you have not figured it out, I am a 30 year employee of JNJ. Off lable promotion has been REPEATEDLY and often reinforced as a FIREABLE offense at JNJ. I have witnessed people who were fired because they "Bent" the rules. The federal government has figured out that they can add $50 Billion plus per year to the treasury by doing this.
      I they deem you INELIGIBLE to participate in their programs, you are screwed!

      I have said repeatedly, THE FEDERAL GOVERNMENT IS THE LARGEST PAYER FOR DRUGS, DEVICES, AND SUPPLIES IN
      THE HEALTH CARE SECTOR. If they deem you ineligible to paeticipate in their programs, every STOCKHOLDER IN JNJ IS SCREWED....Sales will go from $63 Billion to %35 Billion in a year...

      THEY KNOW IT. THAT'S WHY YOU ARE SEEING ALL OF THESE FEDERAL/STATE LAWSUITS....


      It's a great way to treat he industry that has developed drugs to prevent polio, memps, meases, reubella, and heal ULCERS which before the development of Tagamet in 1978 (which totally obliterated gastrectomies, the NUMBER ONE surgical procedure in the US at a cost of $7,500 per procedure in 1979 dollars) which is now available OTC.....

      NEED I go on. This obliteration of our pharmacuetucalindustry is absolutley hoorendous and will be paid for by millions of people dying when our very efficient federal government decides whidh disease to focus upon. AFTER ALL IT WORKS SO WELL WITH FLU PREVENTION...

    • Laddie -
      I agree.

    • Credo...fully agree. It's a 'no-win' for the company. Either fight to prove your innocent and pay enormous amounts of money or pay the fine and be done with it. I truly don't know the answer but I believe the company should 'fight' this nonsense. But then again, I don't know all the details either. Guess the lawyers and the board will make the call.

    • The Federal Government holds all the cards. They decide what will be included in the drug label. They approve/disapprove all marketing material.

      The LAW says that they can BAN you from participating in all federal programs. They are the largest payer in health care. JNJ is a health care company. The BAN would affect the sale of everything JNJ sells. Drugs, devices, supplies, everything. That's why they will negotiate a settlement with the Federal Government. Probably $20-25 BILLION in lost sales would result from a BAN.


      The shakedown continues.

    • Just another one of the skeletons which fell out of Bill Weldon's closet.

      Not possible that he did not know what was going on. He either approved it, or possibly ignored it, which was just as bad.

      • 1 Reply to credorules
      • Credo, just a couple of comments: First, all pharma companies are very sensitive about 'off-label' promotion..they all know the consequences of doing it. Second, 'off label' promotion many times is in the 'eyes of the beholder'. The Feds can claim you promoted off label when, in fact, you followed the rules but they have a 'different interpertation'. Do companies make mistakes, yes. But you need to know all the 'facts' before believing what the feds say at 'face value'. Finally, remember, it's a 'lot of money' issue.

    • Yep lets see tomorrow brings. $1B isn't pocket change.

      Prosecutors Seek $1B From J&J

      Federal prosecutors are seeking roughly $1 billion to resolve a long-running probe into Johnson & Johnson's marketing of the antipsychotic drug Risperdal, according to people familiar with the matter.

      Since 2004, the federal government has been investigating whether J&J's Janssen Pharmaceutica unit improperly promoted Risperdal for unapproved uses, J&J has said in filings with the Securities and Exchange Commission. In its latest filing Tuesday, the New Brunswick, N.J., company said it had set aside an unspecified sum to settle potential civil and criminal charges.

      J&J said its discussions with the government "are ongoing and it is inappropriate to speculate." Representatives for federal prosecutors in Philadelphia and Washington, D.C., said they don't comment on such matters.

    • The government shake down of pharma continues! Let's see....how do they determine which physicians were writing off label Rx's ON THEIR OWN, without any promotion by the company???? Is there a way to do that??? Or are they assuming that all Rx's written outside of the labeling (that one of their OWN AGENCIES approved) are generated by the company's efforts??? Unbelievable..

 
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