Johnson & Johnson to pay $2.2b for settlement

Johnson & Johnson to pay $2.2b for settlementJohnson & Johnson has said that it has agreed to pay $2.2 billion to settle civil and criminal allegations relating to off-label, unapproved uses for three prescription drugs.

The Justice Department officials announced on Monday that the company has agreed to pay the settlement amount to settle claims. The case that started in 1990s and went on till the early 2000s included allegations of kickbacks to doctors and pharmacies to promote the antipsychotic drugs Risperdal and Invega, and a heart drug, Natrecor.

The settlement between the authorities and the company is one of the largest health-care fraud settlements in the US. The administration accused the company's subsidiary of promoting Risperdal for controlling anxiety and aggression in elderly dementia patients, as well as for treating behavioural problems in other "vulnerable" populations even as the Food and Drug Administration granted approval for the drug only for schizophrenia.

It also accused the company of promoting off-label uses for Invega and made false and misleading claims relating to safety and efficacy of the drugs. Justice officials said another Johnson & Johnson subsidiary promoted Natrecor for some patients with less severe heart disease than the medicine was actually approved for in the country.