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

MarketScreener Homepage  >  Equities  >  Nyse  >  Johnson & Johnson    JNJ

My previous session
Most popular
News SummaryMost relevantAll newsOfficial PublicationsSector newsTweets

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 | 11:19pm CET
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 2.89% 277.3 Delayed Quote.-15.30%
JAZZ PHARMACEUTICALS PLC -1.08% 139.65 Delayed Quote.3.71%
JOHNSON & JOHNSON -0.12% 145.26 Delayed Quote.4.09%
PFIZER 1.09% 44.4 Delayed Quote.21.26%
UNITED THERAPEUTICS CORPORATION -0.86% 108.5 Delayed Quote.-26.66%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on JOHNSON & JOHNSON
10:11aJOHNSON & JOHNSON : Janssen Hosts Prostate Cancer Awareness Event 'More Time for..
12/10JOHNSON & JOHNSON : Janssen hosts prostate cancer awareness event ‘More Ti..
12/10JOHNSON OUTDOORS : Former Nike, SC Johnson CEO joins Johnson Outdoors board
12/08JOHNSON & JOHNSON : Drug company settles government claims of kickbacks from cha..
12/07JOHNSON & JOHNSON : Works with U.S. PEPFAR Program to Expand Access for HIV Trea..
12/07JOHNSON & JOHNSON : J&J unit will pay $360m to close kickback probe
12/07FAULTY HIP IMPLANT : Patients reject Johnson & Johnson offer of compensation
12/06J&J unit to pay $360 million to U.S. to resolve charity kickback probe
12/06JOHNSON OUTDOORS : Names William D. Perez to Board of Directors
12/05JOHNSON & JOHNSON : Janssen Pharmaceutical - New Phase 3 CASSINI Data Presented ..
More news
News from SeekingAlpha
12/10Constellation Pharma advances clinical development of lead drug CPI-1205 
12/10BERKSHIRE HATHAWAY : Are Warren Buffett & Co. Losing Their Midas Touch? 
12/08How To Retire At 62 With Just Half A Million 
12/07Market Structure Is Still Broken 
12/07BOEING : What Will The Dividend Increase Be Next Week? 
Financials ($)
Sales 2018 81 348 M
EBIT 2018 25 410 M
Net income 2018 17 909 M
Debt 2018 9 981 M
Yield 2018 2,46%
P/E ratio 2018 22,65
P/E ratio 2019 19,30
EV / Sales 2018 4,91x
EV / Sales 2019 4,68x
Capitalization 390 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 1,8%
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 & JOHNSON4.09%389 584
PFIZER21.26%257 520
NOVARTIS3.06%218 721
ROCHE HOLDING LTD.0.30%215 316
MERCK AND COMPANY37.59%201 321
AMGEN11.61%123 678