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Crystal Research CEO Speaks With ABC News/Al Jazeera on JNJ Settlement

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On Tuesday, Jeffrey Kraws, senior pharmaceutical analyst at Crystal Research Associates, spoke with ABC News and Al Jazeera television regarding Johnson & Johnson’s $2.2 billion settlement for unlawfully marketing Risperdal, an anti-psychotic drug. Risperdal is FDA approved to treat schizophrenia but was illegally marketed to doctors and nursing homes as a treatment for elderly patients with dementia. The settlement included criminal fines totaling $485 million and civil fines of over $1.7 billion, which included payments to whistleblowers.  

Mr. Kraws spoke with Al Jazeera from New York City in a live segment airing overseas shortly after 4 PM ET on Tuesday. Among other questions, Kraws explains some of the ethical and brand image ramifications of JNJ’s actions and answers how the drug giant was able to use a system of internal as well as third-party players, kickbacks, and unsubstantiated product claims put forth over the years despite repeated warnings from the FDA.  

Kraws’ segment further discusses how, despite being one of the largest settlements between drug makers and federal prosecutors, JNJ was in reality let off relatively lightly—a testament to the ingenuity of the pharma company’s counsel, as JNJ will be allowed to continue to deal with Medicare and other government agencies and nursing homes going forward. Of note, JNJ was required to put forth a five-year integrity plan to modify its compensation to sales reps to adhere to “good behavior,” but was certainly still let off the hook as there was no real impact to earnings. Kraws discusses more in the clip below. (Approx. 4 minutes)


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