Saturday, June 09, 2012

J&J kickback reserves

Johnson & Johnson Reserves Funds for Settlement

Business Briefing

By THE ASSOCIATED PRESS

Published: June 8, 2012

Johnson & Johnson said Friday that it would add about $600 million to its reserves to cover a possible settlement of allegations that it paid kickbacks to a company that dispenses drugs to nursing homes. Johnson & Johnson said it would take a one-time charge in the second quarter to cover a possible settlement of a whistle-blower lawsuit. In 2010, United States attorneys joined two lawsuits claiming that Johnson & Johnson made improper payments to Omnicare to get the company to buy more of its schizophrenia drugs Risperdal and Invega and a respiratory drug, Natrecor, and that Omnicare’s pharmacists then recommended doctors prescribe those drugs. Johnson & Johnson said it gave standard discounts to Omnicare, and that those discounts were not illegal as long as they were properly disclosed.

http://www.nytimes.com/2012/06/09/business/johnson-johnson-reserves-funds-for-settlement.html?_r=1&partner=rss&emc=rss

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