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Johnson & Johnson's Agressive Marketing Causes an Explosion of Litigation

Johnson & Johnson's Agressive Marketing Causes an Explosion of Litigation

Margaret Cronin Fisk, Jef Feeley and David Voreacos / BusinessWeek

Johnson & Johnson’s Risperdal was, in some ways, a drugmaker’s dream. At its peak in 2007, the antipsychosis medicine produced $4.5 billion in revenue. But it has also opened up a medicine cabinet full of legal woes. Lawsuits are now pending against J&J in 10 U.S. states for promoting Risperdal “off-label” – meaning for uses the Food & Drug Administration did not approve. And in January of this year, the U.S. Justice Dept. sued J&J in a federal court in Boston, claiming the company paid kickbacks to Omnicare, the largest U.S. pharmacy for nursing home patients, to buy and recommend Risperdal and other drugs.

Documents from a lawsuit by the state of Louisiana accusing J&J of off-label marketing shed fresh light on the company’s long-standing desire to broaden the market for Risperdal beyond the ailments listed initially on the label – psychotic disorders linked to schizophrenia. J&J disclosed the documents from the suit, filed in the Opelousas district court in September 2004, after Bloomberg News asked the court to unseal them. The case is scheduled to go to trial in September.

As early as 1994, the filings show, the FDA ordered J&J’s Janssen Pharmaceuticals unit, which developed Risperdal, to stop making false and misleading marketing claims about the drug’s superiority to competing medicines. In 1999 the FDA warned J&J in a letter that its marketing materials for geriatric patients, including brochures, journal ads, and letters, overstated Risperdal’s benefits while minimizing its risks. The letter said J&J misleadingly implied that Risperdal had been found effective for illnesses such as bipolar disorder and elderly psychosis. Months later J&J drew up a business plan that called for increasing Risperdal’s market share in treatments for elderly dementia, aiming at $302 million in sales, the filings show.

“Egregious Examples”

Louisiana cited dozens of internal J&J files in its lawsuit claiming the company marketed Risperdal to the elderly and to children for unapproved, off-label uses. Professor Jerry Avorn of Harvard Medical School, who isn’t involved in the case, says the papers add up to “one of the more egregious examples” of marketing drugs to vulnerable patients. Medical professionals know “that drug companies resort to unsavory practices to promote drugs,” he says, but seeing the details of this campaign “is still pretty upsetting.”

J&J, based in New Brunswick, N.J., denies engaging in off-label marketing and has not reserved money for a settlement. The company says it will fight the lawsuit, in which Louisiana seeks hundreds of millions of dollars in fines and reimbursement of public funds spent on Risperdal. Louisiana “does not cite any evidence that Janssen made misrepresentations or engaged in off-label promotion of Risperdal,” J&J said on Nov. 30, 2009, in court papers asking a Louisiana state court judge to dismiss the case. In an e-mail, a Janssen spokesman told Bloomberg: "The Louisiana litigation should be decided on the body of evidence, including testimony, not the basis of excerpts from documents that could be selectively quoted.

U.S. laws give doctors a lot of leeway when it comes to prescription drugs. They can treat patients with any medicine as long as the FDA has deemed it safe and effective against at least one ailment. But it’s illegal for drug companies to make false claims or to promote drugs off-label.

The court filings show Janssen sought to sell Risperdal for bipolar disorder, dementia, mood and anxiety disorders, and other unapproved uses. Janssen salespeople promoted the drug to doctors, nursing homes, Veterans Administration facilities, and jails, and they also gave materials to doctors about studies involving unapproved uses. Over time, the FDA did conclude that Risperdal was effective for several mental illnesses.