US: 2 Drug Subsidiaries Agree To Settle On Topamax
From Associated Press (April 29, 2010)
WASHINGTON -- Two subsidiaries of pharmaceutical giant Johnson & Johnson have agreed to pay more than $81 million stemming from allegedly illegal promotion of the epilepsy drug Topamax for psychiatric uses, the Justice Department announced Thursday.
Federal drug regulators approved Topamax as an anti-epileptic drug and for prevention of migraines.
The Justice Department case was the second settlement this week involving a pharmaceutical manufacturer’s alleged misconduct involving promotion of unapproved uses for a drug.
On Tuesday, Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius announced a $520 million settlement with AstraZeneca, resolving allegations of illegal marketing of the Anglo-Swiss company’s antipsychotic drug Seroquel.
In the case involving Topamax, the government says Ortho-McNeil-Janssen Pharmaceuticals Inc. will pay over $75 million for alleged illegal promotion of the drug for a variety of psychiatric uses.
Ortho-McNeil Pharmaceutical LLC, a subsidiary of OMJPI, has agreed to plead guilty to a single misdemeanor violation of the Food, Drug and Cosmetic Act and to pay a $6.1 million criminal fine.
The government says that Ortho-McNeil Pharmaceutical promoted Topamax sales for unapproved psychiatric uses under a program called "Doctor-for-a-Day." Under it, Ortho-McNeil hired outside physicians who joined sales representatives in visits to health care providers and to speak at meetings and dinners about prescribing Topamax for unapproved uses.
In a statement, Ortho-McNeil-Janssen Pharmaceuticals Inc. said it has been cooperating with the government since its investigation began in December 2003.
OMJPI denies it engaged in any wrongful conduct, with the exception of acknowledging the admissions made by Ortho-McNeil Pharmaceutical LLC in connection with the misdemeanor plea, the company added.
The settlement resolves two lawsuits brought under the False Claims Act, in which private whistleblowers can sue on behalf of the United States. More than $9 million of the settlement will go to the private citizens who brought the lawsuits.
AP Press Business Writer Linda A. Johnson contributed to this report from Trenton, New Jersey.
Posted: April 2010