Big Pharma Company Found Guilty of Deceptive Marketing
State governments are taking matters into their own hands when it comes to dangerous drugs. Under the South Carolina Unfair Trade Practices Act, Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, has been ordered to pay the state $327 million for deceptively marketing its drug Risperdal.
Risperdal is an antipsychotic drug used to treat schizophrenia. Known as a blockbuster drug, Risperdal made $1.5 billion in sales in 2010 alone. South Carolina estimates that 620,000 prescriptions of Risperdal were written for residents on Medicaid and the state health plan.
Last March, a jury found that Janssen had violated the unfair trade law by sending misleading letters to 7,200 South Carolina doctors. In the letters, Janssen downplayed the risk to patients of contracting diabetes while on Risperdal. The company also claimed that the drug was safer than its counterparts manufactured by other companies.
Judge Roger Couch, who entered the order against Janssen, found that the company knew about the risks associated with taking the medicine, but intentionally concealed the studies from the public. Of the deceptive act, Judge Couch said “There is absolutely no doubt in my mind that the desire to protect market share overshadowed the good judgment of those in control at Janssen.”
Can Texas consumers trust that Janssen did not do the same in this state?
