During its quarterly earnings report, Johnson & Johnson announced that its Horsham subsidiary, Janssen Biotech, is under investigation by the U.S. Department of Justice, writes John George for Philadelphia Business Journal.
Janssen Biotech received a Civil Investigative Demand from the DOJ in March for a False Claims Act investigation. The investigation is focused on the management and advisory services Janssen provides to rheumatology and gastroenterology practices that use Johnson & Johnson’s Remicade and/or Simponi Aria.
Both of these drugs have been approved as treatments for rheumatoid arthritis as well as other inflammatory disorders. In fact, Remicade is one of Johnson & Johnson’s best selling prescription medications, with sales of $4.8 billion last year.
However, this is not the only legal issue facing Johnson & Johnson. The company was also recently subpoenaed by the U.S. Attorney for the District of Massachusetts to turn over a number of documents “relating to pharmaceutical copayment support programs” for three of its drugs, Olysio, Simponi, and Stelara.
This subpoena is for documents detailing its average manufacturing costs along with the pricing structure for these drugs when sold to the Center for Medicare and Medicaid Services. Documents on rebate payments to state Medicaid agencies have also been subpoenaed.
Read more about the investigation at Philadelphia Business Journal by clicking here.