Thursday, March 11, 2010

J&J - Risperdal: uh oh more kickback trouble

Attorney General Martha Coakley’s office joined a federal lawsuit yesterday that contends that Johnson & Johnson paid tens of millions of dollars in kickbacks to get its drugs, especially the powerful antipsychotic Risperdal, prescribed in nursing homes.

The action was taken as Coakley’s office disclosed that it is also scrutinizing companies that market antipsychotics to Massachusetts nursing homes. These drugs are widely used in some homes for residents suffering from dementia, a condition that puts them at greater risk of death when given antipsychotics.

Antipsychotics were approved to treat people with severe mental illnesses, such as schizophrenia, but it is legal for physicians to prescribe them “off label’’ to treat people with dementia. Pharmaceutical companies are prohibited from marketing or promoting off-label uses of their products.

“The inappropriate off-label marketing of antipsychotic drugs to nursing homes is a significant health and safety issue for our seniors,’’ Coakley said in a statement released by her office. “We have taken strong action on this issue in the past and are continuing to monitor it very closely moving forward.’’

Coakley’s office declined further comment, citing the pending litigation.

The Globe reported Monday that 28 percent of Massachusetts nursing home residents were given antipsychotics last year.

Of that group, 22 percent, or 2,483, did not have a medical condition that calls for such treatment. That rate was 12th highest in the nation, according to federal data.

The lawsuit against Johnson & Johnson — filed in January by the US attorney in Boston, Carmen M. Ortiz — alleges that the drug company paid millions to Omnicare, the nation’s largest provider of drugs to nursing homes, to get the company to intensively push the antipsychotic Risperdal between 1999 and 2004, using rebate programs and other incentives.

That campaign nearly tripled sales of J&J products to Omnicare, from approximately $100 million to over $280 million, with annual purchases of Risperdal alone rising to over $100 million, the suit contends.

Omnicare then filed for reimbursement for these purchases, seeking payment from Medicaid, the joint federal and state health program for the poor, which pays for nursing home care for many seniors.

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