{"id":22381,"date":"2012-04-17T13:25:47","date_gmt":"2012-04-17T17:25:47","guid":{"rendered":"http:\/\/1boringoldman.com\/?p=22381"},"modified":"2012-04-17T17:03:20","modified_gmt":"2012-04-17T21:03:20","slug":"22381","status":"publish","type":"post","link":"https:\/\/1boringoldman.com\/index.php\/2012\/04\/17\/22381\/","title":{"rendered":"pay the price&#8230;"},"content":{"rendered":"<br \/>\n<blockquote>\n<div align=\"center\"><u><strong><a href=\"http:\/\/www.bloomberg.com\/news\/2012-04-13\/j-j-s-gorsky-should-be-forced-to-testify-in-suit-u-s-says-1-.html\" target=\"_blank\"><font color=\"#200020\">J&amp;J&rsquo;s Gorsky Should Be Forced to Testify in Suit, U.S. Says<\/font><\/a><\/strong><\/u><br \/>        <strong><font color=\"#200020\">Reuters<\/font><\/strong><br \/>        By Margaret Cronin Fisk<br \/>        Apr 13, 2012<\/div>\n<p>        <\/p>\n<div align=\"justify\"><sup>Johnson &amp; Johnson&rsquo;s recently named Chief Executive Officer Alex Gorsky should be ordered to give sworn testimony in a lawsuit claiming the company paid kickbacks to influence sales of the antipsychotic drug Risperdal to nursing home patients, government lawyers said. The U.S. sued J&amp;J and two units in January 2010, claiming they paid millions of dollars to induce Omnicare Inc. [OCR] to buy and recommend J&amp;J drugs including Risperdal. Justice Department lawyers asked U.S. District Judge Richard Stearns in Boston to compel Gorsky to appear for a deposition for the suit.<\/p>\n<p>         Gorsky was named in February to take over April 26 as J&amp;J&rsquo;s CEO, succeeding Bill Weldon. Gorsky, who had been vice president of sales and later president of J&amp;J&rsquo;s Janssen unit, has &ldquo;relevant knowledge&rdquo; concerning the division&rsquo;s marketing to Omnicare, attorneys for the U.S. said in court papers April 11. This includes &ldquo;knowledge about various allegedly illegal payments that J&amp;J made to induce Omnicare to purchase and recommend Risperdal,&rdquo; the U.S. said. The company said it wouldn&rsquo;t make Gorsky available for a deposition, calling the request &ldquo;nothing more than a fishing expedition,&rdquo; according to a March 26 letter sent to the Justice Department. J&amp;J has argued that payments to Omnicare were allowable rebates and not illegal kickbacks. <\/p>\n<p>         &ldquo;Mr. Gorsky has no reasonable connection to the subject matter of the government&rsquo;s complaint and was not involved with the facts underlying this case,&rdquo; attorney Robert D. Keeling, of Sidley &amp; Austin, said in the letter. The request for Gorsky&rsquo;s testimony &ldquo;unnecessarily targets &#8211; and thus would unduly harass &#8211; J&amp;J&rsquo;s top executive.&rdquo; While with Janssen, Gorsky &ldquo;was in a position to know why J&amp;J chose not to inform Omnicare [or members of Janssen&rsquo;s own sales staff] that, in January 1999, the Food and Drug Administration had warned J&amp;J that marketing Risperdal as safe and effective in the elderly would be false and misleading,&rdquo; the U.S. said in the April 11 filing. The company declined to comment because it is pending litigation, Bill Price, a J&amp;J spokesman, said in an e-mail today&#8230;<\/sup><\/div>\n<\/blockquote>\n<blockquote>\n<div align=\"center\"><a href=\"http:\/\/www.pharmalot.com\/2012\/04\/feds-to-jj-cough-up-alex-gorsky-now\/\" target=\"_blank\"><u><strong><font color=\"#200020\">Feds To J&amp;J: Cough Up Alex Gorsky&hellip; Now!<\/font><\/strong><\/u><\/a><br \/>  <strong><font color=\"#004400\">Pharmalot<\/font><\/strong><br \/>  By Ed Silverman<br \/>  April 13th, 2012<\/div>\n<p>  <\/p>\n<div align=\"justify\"><sup>Once  again, Johnson &amp; Johnson and the federal government are locking  horns. The latest instance is an attempt by the feds to compel Alex  Gorsky, who is about to succeed the embattled Bill Weldon as ceo of the  health care giant, to provide a deposition in a widely publicized  kickback case involving the Omnicare nursing home pharmacy. For those who may not recall, J&amp;J is denying claims in a <u><strong><a href=\"http:\/\/freepdfhosting.com\/e4fd147775.pdf\" target=\"_blank\"><font color=\"#200020\">whistleblower lawsuit<\/font><\/a><\/strong><\/u>,  which was joined by the US government, that charges Omnicare received  kickbacks &ndash; in the form of rebates, educational grants and payments for  marketing data &ndash; so the Risperdal antipsychotic would be prescribed more  often. The lawsuit also alleged J&amp;J&rsquo;s Janssen unit hid the payments  from Medicaid to avoid reporting a &lsquo;best price&rsquo; that would have  triggered rebates to the agency&#8230;<\/p>\n<p>  So the feds want to quiz Gorsky about his dealings with Omnicare and  his knowledge of how J&amp;J marketed Risperdal to the nursing home  pharmacy, starting in the late 1990&prime;s. And the feds contend that, unlike  the lawyers who had difficulty recalling certain key details and  interactions, Gorksy should know a thing or two. J&amp;J argues that  Gorsky &ldquo;has no reasonable connection to the subject matter of the  government&rsquo;s complaint and was not involved in the facts underlying this  case.&rdquo; But the feds point out that he was the go-to guy when it came to  Omnicare and Risperdal, and no one else possesses the same level of  knowledge.  <\/p>\n<p>  From October 1998 to October 2001, Gorsky was Janssen&rsquo;s vp of  marketing, and from October 2001 to early 2003 he was the Janssen  president, the feds note in court papers. During that time, he was  responsible for selling Risperdal, and Omnicare was the biggest  Risperdal customer. Moreover, according to his resume, Gorsky instituted  a Janssen compliance program for regulatory and legal issues. He also  regularly received monthly reports on J&amp;J&rsquo;s Long Term Care Group,  including reports which had details about Omnicare efforts to promote  Risperdal prescribing of Risperdal. And Gorsky met repeatedly with  senior Omnicare execs to discuss those efforts.<\/p>\n<p>   And this is the crucial part: &ldquo;As vice president of marketing, and  having previously worked closely with J&amp;J&rsquo;s Medical Development  group [which was responsible for developing clinical trial data for  Risperdal], he was in a position to know why J&amp;J chose not to inform  Omnicare [or members of Janssen&rsquo;s own sales staff] that, in January  1999, the Food &amp; Drug Administration had warned J&amp;J that  marketing Risperdal as safe and effective in the elderly would be false  and misleading because the drug had not been adequately studied in that  population,&rdquo; the feds write. &ldquo;Likewise, he was in a position to know why J&amp;J did not disclose  to Omnicare executives that, in 1999, the FDA had rejected J&amp;J&rsquo;s  attempt to get approval to market Risperdal for treatment of psychotic  and behavioral disturbances in dementia [by far, the most prevalent use  of Risperdal in Omnicare-served nursing facilities] because of  inadequate safety data&rdquo; [<u><strong><a href=\"http:\/\/freepdfhosting.com\/45c57a702f.pdf\" target=\"_blank\"><font color=\"#200020\">here is the motion<\/font><\/a><\/strong><\/u> filed by the feds to depose Gorsky]&#8230;<\/sup><\/div>\n<\/blockquote>\n<blockquote>\n<div align=\"center\"><u><strong><a href=\"http:\/\/www.fiercepharma.com\/story\/justice-jj-duel-over-gorskys-contribution-kickback-case\/2012-04-16#ixzz1sJk0igAn\" target=\"_blank\"><font color=\"#200020\">Justice, J&amp;J duel over Gorsky&#8217;s contribution to kickback case<\/font><\/a><\/strong><\/u><br \/>         <strong><font color=\"#200020\">Fierce Pharma<\/font><\/strong><br \/>        By Ryan McBride<br \/>         April 16, 2012<\/div>\n<p>        <\/p>\n<div align=\"justify\"><sup>Alex Gorsky&#8217;s name has surfaced in the U.S. government&#8217;s Risperdal marketing lawsuit just weeks before he is supposed to step into the role of CEO at the healthcare giant Johnson &amp; Johnson. The Department of Justice wants Gorsky to answer questions in its civil suit against J&amp;J, and the company has been stymieing the effort in a struggle to keep its next chief executive out of the matter&#8230;<\/p>\n<p>         The government&#8217;s request to talk to Gorsky follows its civil lawsuit against J&amp;J for shelling out millions of dollars in alleged kickbacks to Omnicare ($OCR) to get the pharmacy services provider to push for use of J&amp;J drugs such as Risperdal with its nursing home customers, The Wall Street Journal reported. New Brunswick, NJ-based J&amp;J has maintained its innocence in the case. Omnicare forked over $98 million to resolve its part in the kickback controversy, doing so without admitting guilt.<\/p>\n<p>         What does Gorsky know? The way Justice officials figure, he was in leadership positions at J&amp;J and the company&#8217;s Janssen unit, which sells Risperdal, at the same time alleged marketing misdeeds were committed during the late 1990s and 2000s. And he had a role in marketing activities at the company, according to the WSJ piece.&nbsp; &quot;Mr. Gorsky did have personal involvement in some of the transactions at issue, and likely has knowledge of others &#8211; and so the United States should be permitted to depose Mr. Gorsky,&quot; Justice wrote in its request to U.S. District Judge Richard Stearns, as quoted by the WSJ.<\/sup><\/div>\n<\/blockquote>\n<div align=\"justify\">Gorsky was in charge of CNS Marketing for Janssen. In the Allen Jones v. Janssen et al Trial, during the <u><strong><a href=\"http:\/\/1boringoldman.com\/wp-admin\/1boringoldman.com\/texas-transcripts\/2012-01-11%20State%20v.%20Janssen%20Vol%203.pdf#page=81\" target=\"_blank\"><font color=\"#200020\">Deposition of Steven Shon<\/font><\/a><\/strong><\/u> [the TMAP Pied Piper and Director of TDMHMR], Shon was being asked about a trip he took to Janssen&#8217;s Headquarters in New Jersey:     <\/div>\n<blockquote>\n<div align=\"justify\"><sup>Q. Let me hand you what&#8217;s been marked previously as Exhibit 224. I&#8217;ll represent to you this is an e-mail string, the subject of which is your visit to the Janssen home office.<br \/>      A. Yes.<br \/>      Q. The bottom half of the e-mail, the sentence that begins, &quot;Dr. Shon is a very influential KOL in the public sector&quot; psychia &#8211; &quot;psychiatry arena.&quot; Have you ever heard the term KOL?<br \/>      A. No.<br \/>      Q. It says in the sentence right before that, &quot;It is critical that we support and maintain a strategic alliance with Dr. Shon for the following reasons.&quot; Do you see that?<br \/>      A. Yes.<br \/>      Q. And it talks about you being an influential KOL. Did anyone from Janssen tell you that they were interested in supporting and maintaining a strategic alliance with you?<br \/>      A. That was not discussed, no.<br \/>      Q. So it says there down there at the bottom, &quot;To provide some flexibility for attendees, Dr. Shon has agreed to make two presentations. The first presentation will run from 10:00 to 12:00 in Alex Gorsky&#8217;s&quot; &#8212; &quot;Alex Gorsky&#8217;s conference room,&quot; right?<br \/>      A. Yes.<br \/>      Q. And Mr. Gorsky was, at the time, either a very senior executive or &#8211; or the chief executive officer at Janssen, was he not?<br \/>      A. I knew he was an executive. I wasn&#8217;t sure how high up he was.<br \/>      Q. &quot;He will conduct the second presentation from 1:00 to 3:00 in a meeting room to be determined. The content of both presentations will be the same.&quot; And I believe you told us earlier, Dr. Shon, that the content of the presentations was your overview of &#8211; of both the history and the current developments in TMAP.<br \/>      A. That&#8217;s correct.<br \/>      Q. Did you do this trip on the State of Texas&#8217;s time or comp time or vacation?<br \/>      A. I don&#8217;t recall. I don&#8217;t recall. It was probably State of Texas time, I think, but I could be wrong.<br \/>      Q. And Janssen promised to reimburse you for all your costs associated with that?<br \/>      A. Yes.<br \/>      Q. And are you familiar that the Texas Penal Code in Section 3607 prohibits a public servant like yourself from soliciting, accepting or agreeing to accept any honorarium in consideration for doing any services that the public servant would not have been requested to provide but for that person&#8217;s official position or duties?<br \/>      A. Yes.<br \/>      Q. If you were being asked to speak because of your title or position, it was prohibited by law and by policy of the TDMHMR to accept honoraria?<br \/>      A. Yes. <\/sup><\/div>\n<\/blockquote>\n<div align=\"center\"><img decoding=\"async\" border=\"1\" width=\"250\" vspace=\"5\" src=\"http:\/\/www.bloomberg.com\/image\/izCGdBqVY.D0.jpg\" \/>&nbsp;<\/div>\n<div align=\"justify\">They showed that email train at the Trial but I don&#8217;t have the exhibits to review it. My notes have &quot;<u><strong><font color=\"#200020\">Gorsky!?<\/font><\/strong><\/u>&quot; I interpret that as something like &quot;central figure!&quot; I expect if he&#8217;s having a private audience for Steven Shon&#8217;s presentation, he was way in the center of things. And if he had time for Shon and a briefing on TMAP, he ought to have some time for the feds. Maybe this is just wishful thinking on my part, but could this be a sign that they&#8217;re finally going to go after a specific person instead of a company with deep pockets? These decisions and payoffs are made by actual people and it has always been said that this stuff won&#8217;t stop until actual people pay the price, rather than a corporate checkbook&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>J&amp;J&rsquo;s Gorsky Should Be Forced to Testify in Suit, U.S. Says Reuters By Margaret Cronin Fisk Apr 13, 2012 Johnson &amp; Johnson&rsquo;s recently named Chief Executive Officer Alex Gorsky should be ordered to give sworn testimony in a lawsuit claiming the company paid kickbacks to influence sales of the antipsychotic drug Risperdal to nursing home [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_forum_subforum_count":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-22381","post","type-post","status-publish","format-standard","hentry","category-politics"],"_links":{"self":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/22381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/comments?post=22381"}],"version-history":[{"count":13,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/22381\/revisions"}],"predecessor-version":[{"id":41402,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/posts\/22381\/revisions\/41402"}],"wp:attachment":[{"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/media?parent=22381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/categories?post=22381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/1boringoldman.com\/index.php\/wp-json\/wp\/v2\/tags?post=22381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}