The US Federal prosecutors are seeking about $1 billion to resolve a long-running probe into healthcare giant Johnson & Johnson's marketing of the anti-psychotic drug Risperdal, says a media report.
Attributing to a person familiar with the matter, a
Wall Street Journal report said: "The US Federal prosecutors are seeking roughly $1 billion to resolve a long-running probe into Johnson & Johnson's marketing of the anti-psychotic drug Risperdal."
It is alleged that the drug maker used false marketing tactics to persuade the Medicaid officials in the US to give preference to its costlier drug Risperdal and spend millions on it.
A settlement of around $1 billion would be among the largest in a string of settlements related to off-label marketing of drugs in recent years, and would likely have a material impact on J&J's
quarterly financial results, the report noted.
Earlier this week, the company said that since 2004, the federal government has been investigating whether J&J's Janssen Pharmaceutica unit improperly promoted Risperdal for unapproved uses.
It also said that it has set aside an unspecified amount for a potential settlement, and would "likely" face civil and criminal litigation if it did not settle.
According to the publication, J&J said its discussions with the government "are ongoing and it is inappropriate to speculate".
Spokespersons for federal prosecutors in Philadelphia and Washington declined to comment on such matters, it said.
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The US Federal prosecutors are seeking about $1 billion to resolve a long-running probe into healthcare giant Johnson & Johnson's marketing of the anti-psychotic drug Risperdal, says a media report.