1 Boring Old Man

Judges Uphold Dismissal of Pennsylvania Risperdal Suit Against Johnson & Johnson
Fox Business News
by Peter Loftus
July 26, 2012

A Pennsylvania appeals court handed a legal victory to Johnson & Johnson [JNJ] by upholding the dismissal of the state’s lawsuit accusing the drug maker of improperly marketing the antipsychotic drug Risperdal. The Commonwealth of Pennsylvania had filed suit against J&J in 2007 seeking to recover expenses incurred by the state’s Medicaid program for reimbursing pharmacies for the purchase of Risperdal. The state alleged that J&J had promoted Risperdal for unapproved uses – also known as "off-label" uses – and misrepresented the drug’s safety risks.

Judges in the Philadelphia Court of Common Pleas threw out the lawsuit in 2010, concluding the state didn’t provide sufficient evidence that J&J’s marketing caused doctors to write off-label prescriptions for Risperdal. The state appealed the trial court’s decision. But the Pennsylvania Commonwealth Court on Thursday affirmed the trial-court decisions. The appellate court said that because a drug manufacturer isn’t a provider of medical goods and services to Medicaid recipients, its conduct doesn’t support civil remedies under the state’s Medicaid Fraud Control Act. J&J’s Janssen Pharmaceuticals unit, which marketed Risperdal, said in a statement Thursday:

^{"The Commonwealth had no evidence of wrongdoing by our company and no basis for its lawsuit."}

^{An attorney representing Pennsylvania couldn’t immediately be reached. While victorious in Pennsylvania, J&J has had some costly legal losses related to its Risperdal marketing in other states. In April, an Arkansas judge ordered J&J to pay $1.2 billion after a jury found J&J’s past marketing of Risperdal violated the state’s consumer protection laws. J&J previously was ordered to pay $327 million in a South Carolina Risperdal case and $258 million in Louisiana. The company is appealing these cases. In addition, J&J is close to a potential $2.2 billion settlement of a U.S.-led investigation of J&J marketing practices including those for Risperdal, The Wall Street Journal reported last week.}

J&J wins Risperdal case in Commonwealth Court
Philadelphia Inquirer
by David Sell
July 26, 2012

Johnson & Johnson celebrated a rare victory Thursday in its multi-state court fights over marketing of the antipsychotic drug Risperdal.Pennsylvania’s Commonwealth Court upheld the decisions of two Philadelphia Common Pleas Court judges, who collectively, in effect, dismissed a state-sponsored suit alleging J&J’s Janssen subsidiary inappropriately profited from sales through the taxpayer-funded Medicaid program. "We are very pleased with the Pennsylvania Commonwealth Court’s unanimous decision that the trial judge was correct in granting our motion for non-suit, which effectively dismissed the case filed against the company in 2007," Janssen said in a statement.

^{State officials did not respond to requests for comment, so its unclear if they will appeal. Rispderal is a approved by the U.S. Food and Drug Administration to treat schizophrenia and bipolar mania, but other states won big-money court fights over allegations that Janssen paid kickbacks to officials or marketed the drug for other ailments, sometimes for use in children. Medicaid is a state-federal health-care program for low-income citizens.}

J&J agreed to pay $158 million to stop a trial in Texas. Though appeals are pending, it lost in South Carolina ($327 million), Louisiana ($258 million) and Arkansas ($1.2 billion). The company is negotiating with the federal government and reports suggest it might pay as much as $2.2 billion. Though concepts might transcend state lines, evidence does not always make it across. But in Pennsylvania, the Commonwealth Court essentially agreed with J&J attorney Edward Posner of Drinker Biddle who argued on May 16 in the Philadelphia hearing that the commonwealth had shown “a complete and total failure” to prove its case.