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Texas, 38 other States, Resolve Settlement with Janssen Pharmaceuticals

David McNew, Getty Images

Texas, along with 38 other states, has finalized a $181 million settlement with a pharmaceutical company.

Texas Attorney General Greg Abbott has announced the settlement with Janssen Pharmaceuticals Inc. regarding their unlawful and deceptive marketing of several antipsychotic drugs.

The settlement is the final part of a four-year investigation, which revealed that Janssen urged physicians to prescribe its atypical antipsychotic drugs based off of Risperdal, for purposes not approved by the U.S. Food and Drug Administration.

Texas will receive $11.37 million under the settlement, and Janssen, a subsidiary of Johnson & Johnson, is prohibited from unlawfully marketing the antipsychotics drugs subject to the agreement.

For a five-year period, Janssen must also employ scientifically trained personnel to develop medical content to be provided to providers, clearly disclose the specific risks of the drugs, ensure that financial incentives are not given to sales and marketing staff that promote off-label marketing, and must require that medical education providers disclose any financial support they receive from Janssen to aid their programs.

The Texas AG’s office earlier this year resolved the State’s civil Medicaid fraud case against Janssen, which resolved claims made to doctors of Medicaid patients, resulting in a $61 million recovery for the State of Texas and state taxpayers.

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