According to a Bloomberg report last night, Johnson & Johnson (J&J) has agreed to pay more than $1 billion to end an investigation into the marketing of its antipsychotic drug Risperdal.
The U.S. government began the civil investigation against J&J in 2004 claiming the pharmaceutical company marketed Risperdal for unapproved uses. Risperdal, which used to be the company’s best-selling drug, had been approved by the Food and Drug Administration for some psychotic disorders, including schizophrenia.
But after the company lost its patent on the drug, sales dropped significantly. And, according to the government, J&J’s Janssen unit began marketing Risperdal for unapproved uses, such as bipolar disorder, dementia, and mood and anxiety disorders.
J&J had been trying to settle the suit, but neither the company nor the government has confirmed this agreement.
“We’re not going to comment on rumor or speculation,” Teresa Mueller, a J&J spokeswoman, told Bloomberg.