The U.S. wants Johnson & Johnson (NYSE:JNJ) to pay $1 billion to settle a multi-year probe into whether the company falsely marketed the anti-psychotic Risperdal drug for unapproved uses, according to The Wall Street Journal.
The settlement would be the largest in a string of settlements related to off-label marketing of drugs in recent years and would likely have a material impact on the consumer product maker’s quarterly financial results, the Journal said, citing people close to the matter.
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The investigation has been ongoing since 2004. Prosecutors have been probing whether J&J’s Janssen Pharmaceutica unit illegally promoted Risperdal for unapproved uses.
On Tuesday, the company said it set aside an unspecified amount of money for a potential settlement, noting it would likely face civil and criminal charges if it didn’t settle. J&J said resolution could have a material impact on its quarterly results.
J&J has reaped substantial profits from Risperdal, a drug used to treat schizophrenia, selling more than $2.2 billion worth in the U.S. in 2007 before the U.S. patent expired.