J&J sued for alleged kickbacks

Leading pharmaceutical firm Johnson & Johnson are reportedly the latest firm accused of paying kickbacks to the pharmaceutical supply chain. This time to boost sales of its drugs in nursing homes across the US.

Reports first surfaced on Saturday when, among other reputable sources, the Washington Post reported that the US-based medical giant had paid "tens of millions of dollars" in kickbacks, resulting in the US Department of Justice (DoJ) filing a lawsuit against the firm at the end of last week.

By Sunday, the DoJ had confirmed that it had filed a False Claims Act complaint against J&J. The DoJ say that the firm paid Omnicare, the US's largest pharmacy, to purchase and recommend the firm's drugs, including the antipsychotic drug Risperdal (risperidone), for use in nursing homes between 1999 and 2004. And, according to reports in the Pharma Times, the complaint says that Johnson & Johnson understood that Omnicare's pharmacists reviewed nursing home patients' charts "at least monthly and made recommendations to physicians on what drugs should be prescribed."

'Knowingly accepted'

Reports in the media suggest the US government believe Johnson & Johnson knowingly accepted that physicians followed Omnicare recommendations "more than 80 percent of the time" and therefore alleged that Johnson & Johnson were knowingly manipulating the market to boost revenue. According to the complaint, J&J viewed such pharmacists as an "extension of [its] sales force."

However, reports also suggest that Johnson & Johnson doesn't believe that it acted wrongly. According to a statement from the firm, the company "believes that airing the facts will confirm our conduct, including rebating programmes like those the government now challenges, was lawful and appropriate".

Ultimately, however, the firm's weekend only got worse, after reports also surfaced pertaining to its consumer healthcare division McNeil, which announced it was recalling 53 million bottles of over-the-counter products from the Americas, the United Arab Emirates and Fiji. Reports suggest that the recalled products have been pulled as part of an "investigation of consumers reports of an unusual moldy, musty, or mildew-like odour."

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