J&J to pay US$2.2b in fines for improper marketing of drug

[NEW YORK] Johnson & Johnson has agreed to pay more than US$2.2 billion in criminal and civil fines to settle accusations that it improperly promoted the anti-psychotic drug Risperdal to older adults, children and people with developmental disabilities, the Justice Department said.

The agreement is the third-largest pharmaceutical settlement in US history and the largest in a string of recent cases involving the marketing of anti-psychotic and anti-seizure drugs to older dementia patients. It is part of a decade-long effort by the US government to hold the healthcare giant - and other pharmaceutical companies - accountable for illegally marketing the drugs as a way to control patients with dementia in nursing homes and children with certain behavioural disabilities, despite the health risks of the drugs.

The settlement, which requires the approval of a federal judge, will also resolve accusations that the company inappropriately promoted two other drugs - the heart-failure drug Natrecor and Invega, a newer anti-psychotic drug.