Shares in pharmaceutical companies rose yesterday after Johnson & Johnson were ordered to pay $ 572 million in a historic statement about their share in the opioid crisis.
Although it was handed a large fine, the amount was considerably smaller than the $ 17 million requested by the state of Oklahoma.
After Judge Thad Balkman handed over his ruling J&J shares, it rose by more than five percent, bringing them a profit of $ 13.5 billion, reports CNBC.
Drug maker Teva Pharmaceutical increased by five percent and Endo International increased by three percent after the two-month trial ended yesterday.
The shares of pharmaceutical company Mallinckrodt have also increased by seven percent after it has been determined that J&J are misleading consumers, but the profit has not lasted too long.
Scroll down for video
Shares in Johnson & Johnson increased by more than five percent and gave them a profit of $ 13.5 billion after having to pay a fine of $ 572 million in Oklahoma yesterday. Shares in three other giant pharmaceutical companies also saw profits
Shares in Teva Pharmaceutical, right, Endo International, left and Mallinckrodt also rose yesterday after the trial. The shares of Mallinckrodt initially increased by seven percent, but soon fell again
Judge Thad Balkman, of the Cleveland County District Court in Norman, Oklahoma, imagined arriving yesterday to make a judgment against Johnson & Johnson, saying the company had misled customers and caused an opioid crisis & # 39; in the state
In his verdict, Judge Balkman said that J&J was responsible for the & # 39; destruction & # 39; of the state of Oklahoma by misleading customers with its marketing.
He said they had created an opioid crisis that in nearly two decades resulted in more than 6,000 deaths.
J&J did this by sponsoring medical journals and setting up unbranded marketing campaigns that made their medicines sound safer than they actually were, he said.
HOW J&J MISSED THE MARKET
In his 42-page ruling, the judge outlined how the company was to blame for the crisis.
He said they were guilty of creating nuisance – the term for which they were charged – because they were misleading the market into thinking that drugs were safe.
They did this in different ways, he said.
Unbranded marketing campaigns
The judge noted how J&J sponsored medical magazines and created pain management and opioid campaigns without mentioning their name, so consumers were not aware of their vested interests.
It started in the 1990s after executives had reviewed the success of Purdue Pharma with Oxycontin
During the career of a doctor, they would often, on many different points, be the target of J&J sellers, the judge ruled.
The doctors became & # 39; important customers & # 39; named for the & # 39; pain franchise & # 39;
Sellers would bring them food and offer them coupons to buy more of the products.
It was claimed that doctors were also rewarded with speaking engagements for which they would win a huge financial compensation if they were to buy products.
Dodge the issue of addiction
When pushing their products, sales teams were told to & # 39; the addiction threshold & # 39; to avoid.
Instead, they were told to talk about how pain was treated in the US.
Payments to organizations
The judge noted that J&J had a & # 39; number of payments & # 39; has done to pain interest organizations and other organizations including the American Academy of Pain Medicine, American Pain Society, American Pain Foundation, American Geriatrics Society, American Chronic Pain Association and more.
Ignore warnings about Duragesic, his fentanyl patch
The judge found that J&J ignored warnings from scientists, doctors and the FDA about how dangerous one of its products – Duragesic – was.
Specifically, as early as 2001 their own internal advisor was told that their marketing & # 39; dangerous & # 39; was due to the & # 39; deadly nature & # 39; from Duragesic and that an increase in sales would certainly lead to an increase in drug abuse and addiction. & # 39;
& # 39; The misleading misleading marketing and promotion of opioids caused inconvenience.
& # 39; Those actions endangered the health and safety of thousands of Oklahomans, & # 39; he said.
& # 39; In particular, they caused an opioid crisis as evidenced by an increased rate of addiction, deaths from overdoses and neonatal absenteeism syndrome in Oklahoma.
& # 39; The opioid crisis is an imminent danger and a threat to Oklahomans. This is a temporary nuisance that can be reduced. The opioid crisis devastated the state of Oklahoma. It needs to be phased out immediately, & he said.
In his statement, which DailyMail.com obtained Monday afternoon, he extended his reprimand.
Balkman said the company had started a & # 39; large marketing & # 39; campaign since 1997 after being inspired by rival Purdue Pharma, who is responsible for marketing Oxycontin.
& # 39; They started a major campaign in which they used unbranded and unbranded marketing to spread the messages that pain was being treated and & # 39; there was a low risk of abuse and a low risk of prescribing opioids to treat chronic, non-malignant pain, & # 39; He wrote.
The marketing was not aimed at patients but at doctors and was & # 39; designed & # 39; to hit them multiple times throughout their career.
The drugs that were specifically pushed were Duragesic, a fentanyl patch and Noramco.
While training sales representatives, the judge said Johnson & Johnson told them to downplay the risk factors of his drugs and the & # 39; addiction ditch & # 39; to avoid.
Instead, they were told to focus on their claim that chronic pain management & # 39; under-treated & # 39; used to be.
They focused on doctors, referring to primary care physicians as & # 39; important customers & # 39; for their & # 39; pain franchise & # 39; and even offered discount coupons to boost sales.
& # 39; Opioid marketing of defendants, in its multitude of forms, was false, misleading and misleading & # 39 ;, Balkman wrote.
They also tried to chase doctors by bringing them breakfast, lunch and dinner and sweetening them with speaker strategies, the judge claimed.
Although the first of its kind, the scheme is far removed from the $ 17 billion that the state had requested.
Johnson & Johnson is worth an estimated $ 340 billion.
On Monday the stock took a short dip as news of the prevailing spread.
It was the first of its kind and accused Johnson & Johnson, one of & # 39; the world's largest drug manufacturers, of being responsible for the opioid crisis in Oklahoma.
The company fought it, unlike its competitors. In a statement after the decision, one of the lawyers said it would appeal.
& # 39; We are sympathetic to everyone who suffers from substance abuse, but J&J did not cause the opioid abuse crisis here in Oklahoma or anywhere in this country.
Oklahoma attorney Genera Mike Hunter welcomed the decision Monday. The case lasted more than eight weeks on trial
Oklahoma Attorney General Mike Hunter, left, and state lawyers, left, Michael Burrage, Brad Beckworth and Reggie Whitten, listened carefully while Judge Balkman said that J&J was responsible for the & # 39; destroying & # 39; from the state of Oklahoma and misleading consumers
& # 39; We do not believe that the facts or the law support the decision today. "We have many strong grounds for appeal and we intend to pursue them vigorously," said Sabrina Strong.
The opioid crisis devastated the state of Oklahoma. It must be phased out immediately
Purdue Pharma and Teva, the two other opioid manufacturers who blamed the crisis most, settled outside of the Oklahoma court.
Mike Hunter, Attorney General of Oklahoma, welcomed the news.
& # 39; J&J will finally be held responsible for thousands of deaths and addictions caused by their activities.
& # 39; During the process, our team has proven what we have been saying all the time.
Johnson & Johnson, one of the largest pharmaceutical manufacturers in the world, told the decision to appeal
That the company used misleading information that downplayed the risks of opioids, he said during a press conference after the hearing.
He added that the company & # 39; broken houses, families and communities & # 39; creates.
THE COMPANIES ESTABLISHED TO AVOID TEST
Purdue, which produces the drug OxyContin and is run by the Sackler family in New York, gave Oklahoma $ 270 million in a settlement.
It denies that it is the fault of the nation's opioid crisis.
However, in the statement after the settlement was reached, the company said: & # 39; Purdue is delighted to have reached an agreement with Oklahoma that will help those who fight addiction now and in the future. & # 39;
Teva, based in Israel, agreed to pay $ 80 million just days before the trial began.
It was named as a defendant alongside Purdue and Johnson & Johnson and fought to the last minute.
Teva makes generic medicines and sells them all over the world.
& # 39; We have shown how the company repeatedly ignored warnings … and the risks of marketing its products.
& # 39; The company has promoted its products through unbranded campaigns and financing of patient groups that should resemble basic organizations.
Johnson & Johnson built his billion dollar mark out of greed and on the back of pain and suffering from innocent people, & he said.
As part of their case, prosecutors have presented evidence from various experts, including the families of young people who had received an overdose of opioids, to marketing experts and medical investigators.
They explained how J&J used aggressive marketing practices to market their goods and put them in the hands of doctors.
The company argued that it was not the fault of the crisis and that doctors would not have to justify their products if they were over-prescribed.
The lawyers also argued that while other drugs may have caused death, its products were hardly associated with overdoses.
It was not the first time that a pharmaceutical company was previously charged with opioid abuse, but it was the first time the case was brought to court. In the past, pharmaceutical giants have established themselves privately.
. [TagsToTranslate] Dailymail