Once again the drug giant Johnson & Johnson has been ordered to pay out for its mishandling of the marketing of its drug Risperdal. In early November 2013, the company has plead guilty to a misdemeanor charge of misbranding and has been ordered to pay fines, forfeit profits and settle some pending civil suites to the tune of over $2.2 billion. This is one of the largest payout settlements ever reached between the U.S. government and a pharmaceutical company.
Decades Of Profiting From Risperdal
Risperdal, an atypical antipsychotic, was first approved in 1993 for use in schizophrenia and was manufactured by Jassen Pharmaceuticals, Inc., a subsidiary of Johnson & Johnson. Over the next two decades, the drug would be also used to treat many other mental health issues, some approved by the FDA, others not. The drug was very profitable for J&J, with peak sales in 2007 of $4.5 billion, making up over 5% of the companies sales even in 2008.