Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Equities  >  Nyse  >  Johnson & Johnson    JNJ


News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

J&J unit to pay $360 million to U.S. to resolve charity kickback probe

share with twitter share with LinkedIn share with facebook
share via e-mail
12/06/2018 | 05:19pm EDT
FILE PHOTO:  The company's logo is seen at the headquarters of Swiss biotech company Actelion in Allschwil

BOSTON (Reuters) - A Johnson & Johnson unit will pay the U.S. government $360 million to resolve an investigation into its financial support of a charity that helped Medicare patients cover out-of-pocket drug costs, the Justice Department said on Thursday.

The settlement with Actelion Pharmaceuticals US Inc, which became a subsidiary of J&J following a 2017 acquisition, was the largest so far to result from an industry-wide probe into drugmakers' support of patient assistance charities.

The government said Actelion from 2014 to 2015 used a charity as a conduit to improperly pay the co-pay obligations of thousands of Medicare patients using its pulmonary artery hypertension treatments Tracleer, Ventavis, Veletri and Opsumit.

That charity, Caring Voice Coalition (CVC), has stopped providing aid after the government in 2017 revoked its approval to do so because of concerns drugmakers had improper influence over it.

Actelion did not admit wrongdoing. Caroline Pavis, a company spokeswoman, in a statement said the conduct pre-dated New Brunswick, New Jersey-based J&J's acquisition of Actelion and that it was committed to following the law.

Richmond, Virginia-based CVC said it cannot comment on "ongoing legal matters."

Drug companies are prohibited from subsidizing co-payments for patients enrolled in the Medicare government healthcare program for the elderly. But companies may donate to non-profits providing co-pay assistance as long as they are independent.

Amid increased attention on rising drug prices in the United States, there has been concern that donations from drugmakers to patient-assistance groups may be contributing to price inflation.

A probe led by the U.S. Attorney's Office for the District of Massachusetts has led to allegations that several drugmakers used these charitable foundations as a means to pay Medicare patients' co-pays in violation of the Anti-Kickback Statute.

In Actelion's case, the government said it routinely obtained data from CVC regarding the extent that patients it helped used its drugs. Actelion then used that information to budget for future payments to the charity.

CVC was at the center of an earlier, $210 million settlement by United Therapeutics Corp in December 2017, which resolved claims the company improperly used the charity to cover co-payments.

Several other drugmakers have, since 2015, disclosed receiving subpoenas related to the investigation. Pfizer Inc in May resolved similar allegations involving a different charity for nearly $23.85 million.

Jazz Pharmaceuticals Plc and Lundbeck earlier this year disclosed they had reached agreements to resolve similar claims for $57 million and $52.6 million, respectively.

(Reporting by Nate Raymond in Boston; Editing by Bernadette Baum and Grant McCool)

By Nate Raymond

Stocks mentioned in the article
ChangeLast1st jan.
H. LUNDBECK -0.04% 269.6 Delayed Quote.-5.57%
JAZZ PHARMACEUTICALS PLC -2.48% 137.42 Delayed Quote.10.86%
JOHNSON & JOHNSON 0.74% 139.79 Delayed Quote.7.52%
PFIZER -0.17% 41.92 Delayed Quote.-3.80%
UNITED THERAPEUTICS CORPORATION -1.22% 85.99 Delayed Quote.-21.04%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on JOHNSON & JOHNSON
05/24JOHNSON & JOHNSON : Ex-dividend day for
05/23JOHNSON & JOHNSON : Drug-Resistant TB Having Heavy Toll On Economies
05/23JOHNSON & JOHNSON : Taiwanese Startups Receive 4.5 Million Euros from Swiss & Fr..
05/23JOHNSON & JOHNSON : Janssen Pharmaceutical - U.S. FDA Grants Priority Review of ..
05/22JOHNSON & JOHNSON : J&J Unit Gets FDA Priority Review of Invokana in Chronic Kid..
05/22JOHNSON & JOHNSON : Janssen Pharmaceutical - New Data Highlights the Value of SP..
05/21UPDATE : N.Y. Jury Delivers $25 Million Judgment Against Johnson & Johnson -- Bl..
05/21JOHNSON & JOHNSON : Correction to Johnson & Johnson Jury Story
05/21JOHNSON & JOHNSON : N.Y. Jury Delivers $25 Million Judgment Against Johnson & Jo..
05/21JOHNSON & JOHNSON : New Real-World Evidence Highlights Need for Interventions to..
More news
Financials ($)
Sales 2019 81 174 M
EBIT 2019 25 487 M
Net income 2019 19 737 M
Debt 2019 9 323 M
Yield 2019 2,68%
P/E ratio 2019 19,66
P/E ratio 2020 17,87
EV / Sales 2019 4,69x
EV / Sales 2020 4,32x
Capitalization 371 B
Duration : Period :
Johnson & Johnson Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends JOHNSON & JOHNSON
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 148 $
Spread / Average Target 5,8%
EPS Revisions
Alex Gorsky Chairman & Chief Executive Officer
Joseph J. Wolk Chief Financial Officer & Executive Vice President
Charles O. Prince Independent Director
William David Perez Independent Director
Anne M. Mulcahy Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
JOHNSON & JOHNSON7.52%371 150
PFIZER-3.80%233 461
ROCHE HOLDING LTD.9.84%228 186
NOVARTIS13.31%210 460
ABBVIE-11.50%120 617