J&J Risperdal Letter Violated South Carolina Consumer Law, Jury Finds

[Guest guest]

http://www.businessweek.com/news/2011-03-24/j-j-risperdal-letter-violated-consumer-law-jury-finds.html

J & J Risperdal Letter Violated Consumer Law, Jury Finds

March 24, 2011, 5:10 PM EDT

By Jef Feeley and

(Corrects amount of potential penalties in second paragraph of

story published March 22.)

March 22 (Bloomberg) -- A &

unit violated consumer-protection laws by sending South Carolina

doctors a misleading letter about the safety and effectiveness of

the antipsychotic drug Risperdal, a jury concluded.

Jurors in state court in Spartanburg, South

Carolina, deliberated more than six hours before finding today

that J & J’s Ortho-McNeil-Janssen Pharmaceuticals unit engaged

in “unfair and deceptive acts” by sending a 2003 letter touting

Risperdal as better and safer than competing drugs to more than

7,000 doctors across the state. A judge will decide later whether

the drugmaker should pay $36 million in penalties over the

mailings.

“The verdict they handed down is just and speaks

the truth,” White, a Spartanburg-based lawyer representing

the state, said in an interview. Jurors also found that J & J

warning label information on Risperdal was deceptive.

The state’s case centered on drug-safety claims

that New Brunswick, New Jersey-based J & J and Janssen made in

November 2003 correspondence to about 700,000 doctors across the

U.S., including 7,200 in South Carolina.

The U.S. Food and Drug Administration responded

with a warning letter saying J & J made false and misleading

claims that minimized the potentially fatal risks of diabetes and

overstated the drug’s superiority to competitors’ products.

‘Acted Responsibly’

“We are disappointed,” Greg Panico, a J & J

spokesman, said in a statement. “Janssen acted responsibly and

believes it did not violate” South Carolina law, he said.

South Carolina officials argued in the case that

J & J sent the letter to protect billions of dollars in sales of

the antipsychotic drug.

Risperdal’s global sales peaked at $4.5 billion in

2007 and declined after the company lost patent protection.

Risperdal generated $3.4 billion in sales in 2008, or 5.4 percent

of J & J’s total sales, according to company filings. Sales of

the drug fell to $527 million last year, J & J said in a January

earnings report.

Risperdal Consta, the long-acting version of the

antipsychotic drug, generated $1.5 billion in sales last year for

J & J.

The case is the third of about 10 state lawsuits

to be considered by jurors over J & J’s Risperdal marketing

campaigns. In June, J & J won dismissal of Pennsylvania’s suit

alleging the company hid the drug’s diabetes risk and tricked

regulators into paying millions more than they should have for the

medicine.

Louisiana Verdict

A Louisiana jury ordered the drugmaker in October

to pay $257.7 million in damages to that state for making

misleading claims about Risperdal’s safety. A judge later added

$73 million in legal fees to the award.

A West Virginia judge in a 2009 non-jury trial

awarded $3.95 million, finding the company misled doctors about

the risks and benefits of Risperdal. The state dropped its

Risperdal claim after J & J won an appeal, company officials

said in February.

Under South Carolina’s unfair trade practices law,

Janssen can be fined as much as $5,000 for each Risperdal letter

sent to South Carolina doctors. Judge Couch will decide the

financial-penalty issue after an April 18th hearing.

“After the judge makes a determination as to

damages, we will consider our options,” Panico said in his

statement.

The case is State of South Carolina v. Janssen

Pharmaceuticals, 2007-CP-4201438, Circuit Court for Spartanburg

County, South Carolina (Spartanburg).

--With assistance from Voreacos in Newark, New Jersey, and

Margaret Cronin Fisk in Southfield, Michigan. Editors:

Farr, Glenn Holdcraft.

To contact the reporters on this story: Jef Feeley in Wilmington,

Delaware, at jfeeley@...;

in Spartanburg, South Carolina at wgaryh@....

To contact the editor responsible for this story: E.

Rovella at drovella@....

[Guest guest]

http://www.businessweek.com/news/2011-03-24/j-j-risperdal-letter-violated-consumer-law-jury-finds.html

J & J Risperdal Letter Violated Consumer Law, Jury Finds

March 24, 2011, 5:10 PM EDT

By Jef Feeley and

(Corrects amount of potential penalties in second paragraph of

story published March 22.)

March 22 (Bloomberg) -- A &

unit violated consumer-protection laws by sending South Carolina

doctors a misleading letter about the safety and effectiveness of

the antipsychotic drug Risperdal, a jury concluded.

Jurors in state court in Spartanburg, South

Carolina, deliberated more than six hours before finding today

that J & J’s Ortho-McNeil-Janssen Pharmaceuticals unit engaged

in “unfair and deceptive acts” by sending a 2003 letter touting

Risperdal as better and safer than competing drugs to more than

7,000 doctors across the state. A judge will decide later whether

the drugmaker should pay $36 million in penalties over the

mailings.

“The verdict they handed down is just and speaks

the truth,” White, a Spartanburg-based lawyer representing

the state, said in an interview. Jurors also found that J & J

warning label information on Risperdal was deceptive.

The state’s case centered on drug-safety claims

that New Brunswick, New Jersey-based J & J and Janssen made in

November 2003 correspondence to about 700,000 doctors across the

U.S., including 7,200 in South Carolina.

The U.S. Food and Drug Administration responded

with a warning letter saying J & J made false and misleading

claims that minimized the potentially fatal risks of diabetes and

overstated the drug’s superiority to competitors’ products.

‘Acted Responsibly’

“We are disappointed,” Greg Panico, a J & J

spokesman, said in a statement. “Janssen acted responsibly and

believes it did not violate” South Carolina law, he said.

South Carolina officials argued in the case that

J & J sent the letter to protect billions of dollars in sales of

the antipsychotic drug.

Risperdal’s global sales peaked at $4.5 billion in

2007 and declined after the company lost patent protection.

Risperdal generated $3.4 billion in sales in 2008, or 5.4 percent

of J & J’s total sales, according to company filings. Sales of

the drug fell to $527 million last year, J & J said in a January

earnings report.

Risperdal Consta, the long-acting version of the

antipsychotic drug, generated $1.5 billion in sales last year for

J & J.

The case is the third of about 10 state lawsuits

to be considered by jurors over J & J’s Risperdal marketing

campaigns. In June, J & J won dismissal of Pennsylvania’s suit

alleging the company hid the drug’s diabetes risk and tricked

regulators into paying millions more than they should have for the

medicine.

Louisiana Verdict

A Louisiana jury ordered the drugmaker in October

to pay $257.7 million in damages to that state for making

misleading claims about Risperdal’s safety. A judge later added

$73 million in legal fees to the award.

A West Virginia judge in a 2009 non-jury trial

awarded $3.95 million, finding the company misled doctors about

the risks and benefits of Risperdal. The state dropped its

Risperdal claim after J & J won an appeal, company officials

said in February.

Under South Carolina’s unfair trade practices law,

Janssen can be fined as much as $5,000 for each Risperdal letter

sent to South Carolina doctors. Judge Couch will decide the

financial-penalty issue after an April 18th hearing.

“After the judge makes a determination as to

damages, we will consider our options,” Panico said in his

statement.

The case is State of South Carolina v. Janssen

Pharmaceuticals, 2007-CP-4201438, Circuit Court for Spartanburg

County, South Carolina (Spartanburg).

--With assistance from Voreacos in Newark, New Jersey, and

Margaret Cronin Fisk in Southfield, Michigan. Editors:

Farr, Glenn Holdcraft.

To contact the reporters on this story: Jef Feeley in Wilmington,

Delaware, at jfeeley@...;

in Spartanburg, South Carolina at wgaryh@....

To contact the editor responsible for this story: E.

Rovella at drovella@....

[Guest guest]

http://www.businessweek.com/news/2011-03-24/j-j-risperdal-letter-violated-consumer-law-jury-finds.html

J & J Risperdal Letter Violated Consumer Law, Jury Finds

March 24, 2011, 5:10 PM EDT

By Jef Feeley and

(Corrects amount of potential penalties in second paragraph of

story published March 22.)

March 22 (Bloomberg) -- A &

unit violated consumer-protection laws by sending South Carolina

doctors a misleading letter about the safety and effectiveness of

the antipsychotic drug Risperdal, a jury concluded.

Jurors in state court in Spartanburg, South

Carolina, deliberated more than six hours before finding today

that J & J’s Ortho-McNeil-Janssen Pharmaceuticals unit engaged

in “unfair and deceptive acts” by sending a 2003 letter touting

Risperdal as better and safer than competing drugs to more than

7,000 doctors across the state. A judge will decide later whether

the drugmaker should pay $36 million in penalties over the

mailings.

“The verdict they handed down is just and speaks

the truth,” White, a Spartanburg-based lawyer representing

the state, said in an interview. Jurors also found that J & J

warning label information on Risperdal was deceptive.

The state’s case centered on drug-safety claims

that New Brunswick, New Jersey-based J & J and Janssen made in

November 2003 correspondence to about 700,000 doctors across the

U.S., including 7,200 in South Carolina.

The U.S. Food and Drug Administration responded

with a warning letter saying J & J made false and misleading

claims that minimized the potentially fatal risks of diabetes and

overstated the drug’s superiority to competitors’ products.

‘Acted Responsibly’

“We are disappointed,” Greg Panico, a J & J

spokesman, said in a statement. “Janssen acted responsibly and

believes it did not violate” South Carolina law, he said.

South Carolina officials argued in the case that

J & J sent the letter to protect billions of dollars in sales of

the antipsychotic drug.

Risperdal’s global sales peaked at $4.5 billion in

2007 and declined after the company lost patent protection.

Risperdal generated $3.4 billion in sales in 2008, or 5.4 percent

of J & J’s total sales, according to company filings. Sales of

the drug fell to $527 million last year, J & J said in a January

earnings report.

Risperdal Consta, the long-acting version of the

antipsychotic drug, generated $1.5 billion in sales last year for

J & J.

The case is the third of about 10 state lawsuits

to be considered by jurors over J & J’s Risperdal marketing

campaigns. In June, J & J won dismissal of Pennsylvania’s suit

alleging the company hid the drug’s diabetes risk and tricked

regulators into paying millions more than they should have for the

medicine.

Louisiana Verdict

A Louisiana jury ordered the drugmaker in October

to pay $257.7 million in damages to that state for making

misleading claims about Risperdal’s safety. A judge later added

$73 million in legal fees to the award.

A West Virginia judge in a 2009 non-jury trial

awarded $3.95 million, finding the company misled doctors about

the risks and benefits of Risperdal. The state dropped its

Risperdal claim after J & J won an appeal, company officials

said in February.

Under South Carolina’s unfair trade practices law,

Janssen can be fined as much as $5,000 for each Risperdal letter

sent to South Carolina doctors. Judge Couch will decide the

financial-penalty issue after an April 18th hearing.

“After the judge makes a determination as to

damages, we will consider our options,” Panico said in his

statement.

The case is State of South Carolina v. Janssen

Pharmaceuticals, 2007-CP-4201438, Circuit Court for Spartanburg

County, South Carolina (Spartanburg).

--With assistance from Voreacos in Newark, New Jersey, and

Margaret Cronin Fisk in Southfield, Michigan. Editors:

Farr, Glenn Holdcraft.

To contact the reporters on this story: Jef Feeley in Wilmington,

Delaware, at jfeeley@...;

in Spartanburg, South Carolina at wgaryh@....

To contact the editor responsible for this story: E.

Rovella at drovella@....

[Guest guest]

http://www.businessweek.com/news/2011-03-24/j-j-risperdal-letter-violated-consumer-law-jury-finds.html

J & J Risperdal Letter Violated Consumer Law, Jury Finds

March 24, 2011, 5:10 PM EDT

By Jef Feeley and

(Corrects amount of potential penalties in second paragraph of

story published March 22.)

March 22 (Bloomberg) -- A &

unit violated consumer-protection laws by sending South Carolina

doctors a misleading letter about the safety and effectiveness of

the antipsychotic drug Risperdal, a jury concluded.

Jurors in state court in Spartanburg, South

Carolina, deliberated more than six hours before finding today

that J & J’s Ortho-McNeil-Janssen Pharmaceuticals unit engaged

in “unfair and deceptive acts” by sending a 2003 letter touting

Risperdal as better and safer than competing drugs to more than

7,000 doctors across the state. A judge will decide later whether

the drugmaker should pay $36 million in penalties over the

mailings.

“The verdict they handed down is just and speaks

the truth,” White, a Spartanburg-based lawyer representing

the state, said in an interview. Jurors also found that J & J

warning label information on Risperdal was deceptive.

The state’s case centered on drug-safety claims

that New Brunswick, New Jersey-based J & J and Janssen made in

November 2003 correspondence to about 700,000 doctors across the

U.S., including 7,200 in South Carolina.

The U.S. Food and Drug Administration responded

with a warning letter saying J & J made false and misleading

claims that minimized the potentially fatal risks of diabetes and

overstated the drug’s superiority to competitors’ products.

‘Acted Responsibly’

“We are disappointed,” Greg Panico, a J & J

spokesman, said in a statement. “Janssen acted responsibly and

believes it did not violate” South Carolina law, he said.

South Carolina officials argued in the case that

J & J sent the letter to protect billions of dollars in sales of

the antipsychotic drug.

Risperdal’s global sales peaked at $4.5 billion in

2007 and declined after the company lost patent protection.

Risperdal generated $3.4 billion in sales in 2008, or 5.4 percent

of J & J’s total sales, according to company filings. Sales of

the drug fell to $527 million last year, J & J said in a January

earnings report.

Risperdal Consta, the long-acting version of the

antipsychotic drug, generated $1.5 billion in sales last year for

J & J.

The case is the third of about 10 state lawsuits

to be considered by jurors over J & J’s Risperdal marketing

campaigns. In June, J & J won dismissal of Pennsylvania’s suit

alleging the company hid the drug’s diabetes risk and tricked

regulators into paying millions more than they should have for the

medicine.

Louisiana Verdict

A Louisiana jury ordered the drugmaker in October

to pay $257.7 million in damages to that state for making

misleading claims about Risperdal’s safety. A judge later added

$73 million in legal fees to the award.

A West Virginia judge in a 2009 non-jury trial

awarded $3.95 million, finding the company misled doctors about

the risks and benefits of Risperdal. The state dropped its

Risperdal claim after J & J won an appeal, company officials

said in February.

Under South Carolina’s unfair trade practices law,

Janssen can be fined as much as $5,000 for each Risperdal letter

sent to South Carolina doctors. Judge Couch will decide the

financial-penalty issue after an April 18th hearing.

“After the judge makes a determination as to

damages, we will consider our options,” Panico said in his

statement.

The case is State of South Carolina v. Janssen

Pharmaceuticals, 2007-CP-4201438, Circuit Court for Spartanburg

County, South Carolina (Spartanburg).

--With assistance from Voreacos in Newark, New Jersey, and

Margaret Cronin Fisk in Southfield, Michigan. Editors:

Farr, Glenn Holdcraft.

To contact the reporters on this story: Jef Feeley in Wilmington,

Delaware, at jfeeley@...;

in Spartanburg, South Carolina at wgaryh@....

To contact the editor responsible for this story: E.

Rovella at drovella@....