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U.S. Department of Justice Alleges Johnson & Johnson Paid Kickbacks to Steer Nursing Home Prescriptions: Joins Chicago Pharmacist's Whistleblower Case
Date:1/15/2010

ayments and other alleged kickbacks. (District of Massachusetts, No. 07-10026-RGS)

The government's complaint extensively quotes internal documents from Johnson & Johnson and Omnicare, to demonstrate that the pharmacy's recommendations were for sale. For example, a Johnson & Johnson presentation reported Omnicare pharmacists in nursing homes were "highly motivated based on economics," which depended "less on net costs [to payers, and more on quality of product and 'spread' (their margin)." Confirming that perception, a letter from Omnicare Senior Vice President of Professional Services and Purchasing to Johnson & Johnson brags that "WE ARE SELLING MORE HIGH PRICED DRUGS (read Risperdal here) FOR THE PHARMACEUTICAL INDUSTRY!!"

According to the government and Lisitza, Johnson & Johnson paid huge sums to Omnicare under "market share rebate" agreements, which paid Omnicare according to its success in selling Johnson & Johnson products. Johnson & Johnson also conditioned payment of the rebates upon Omnicare's attempts to convince physicians to prescribe Risperdal® instead of other anti-psychotic drugs. Omnicare allegedly failed to disclose to physicians that its pharmacists' recommendations were tied to Johnson & Johnson's payments. According to the government, Johnson & Johnson's kickbacks drove Omnicare's sales of Johnson & Johnson drugs from $100 million in 1999 to $280 million in 2004.

The complaints filed by the United States and by Lisitza, as well as other court documents, can be found at the reference website
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U.S. Department of Justice Alleges Johnson & Johnson Paid Kickbacks to Steer Nursing Home Prescriptions: Joins Chicago Pharmacist's Whistleblower Case 
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