Texas, 36 States Reach $181 Million Settlement With Janssen Pharmaceuticals

Risperdal (United Kingdom packaging), wikipedia image
Texas Attorney General Greg Abbott, along with attorneys general from 36 other states, announced a $181 million dollar settlement with Janssen Pharmaceuticals. The settlement follows a four-year investigation of unlawful and deceptive marketing of antipsychotic drugs.

The investigation revealed the Johnson & Johnson subsidiary urged physicians to prescribe Risperdal and other antipsychotic drugs for treatment of Alzheimer’s disease, dementia, depression, and anxiety. The U.S. Food and Drug Administration has approved Risperdal-related drugs only for the treatment of schizophrenia.

Tom Kelley is a spokesman for the Texas Attorney General’s Office.

“Physicians may or may not have decided to prescribe these drugs this way. That’s the physicians’ call. What a company may not do itself is to urge physicians to prescribe in an off-label manner — it's called off-label marketing — and that’s exactly what was going on here.”

Texas will receive just over $11 million under the settlement. Earlier this year, the attorney general’s office resolved a similar case against Janssen involving Medicaid fraud. The latest agreement covers misrepresentations made to doctors of non-Medicaid patients.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...