Insured Profile Report – Management Liability Focus Johnson_________________________________________________________________________ & Johnson Company Profile Credit Details Location 1 Johnson and Johnson Plz Overall Credit Risk High Risk New Brunswick, NJ www.jnj.com Number of Legal Derogatory 84 Company Type Public Items Liability Amount $322,285.00 Formerly Known As N/A Experian Intelliscore 2.57 SIC Code 2834 SIC Code Description Pharmaceutical Preparations Experian Intelliscore Percentile 2.00 % of companies score lower and have higher credit risk Established 1955 Experian Commercial IntelliscoreSM is an all-industry commercial model using business information to predict business risk. Its Sales (in millions) $65,030.00 predictiveness is among the best on the market today The objective of the Commercial Intelliscore Model is to predict seriously Employees 117,900 derogatory payment behavior. Possible score range from 0 to 100, where 0 is high risk and 100 is low risk Total OSHA Violations 18 -Liability Amount is the total dollar amount of debtor’s legal liability, OSHA is an arm of the Department of Labor that conducts inspections of company including accounts in collection, tax liens,judgments and/or bankruptcies facilities with the goal of preventing work-related injuries, illnesses and deaths. -The Number of Legal Derogatory items are the sum of Tax-Lien Worksites that do not meet health and/or safety standards at the time of inspection may Count, Bankruptcy,Judgment, Collection-Counter and UCC Derog receive an OSHA violation. Total FDA NDC Drugs 177 The total number of FDA Drugs filed in the FDA NDC Drug Database. Business Description Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies. The Company operates in three segments. The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women's healthcare fields, as well as nutritional and over-the-counter pharmaceutical products. The Pharmaceutical segment includes products in the therapeutic areas, such as anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology. The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers. In July 2009, Johnson & Johnson completed the acquisition of Cougar Biotechnology, Inc. with approximately 95.9% interest in Cougar Biotechnology's outstanding common stock. Litigation & Losses For more information contact your Advisen rep at +1.212.897.4800, email [email protected], or visit www.advisen.com 1 Top Company Management Liability Cases by Settlement Amount Company Acc/Filing Amount Category Subtype Docket Number Court State Date (in millions) Johnson & Johnson 1/1/2004 $1,000.00 Business & Trade Sales Practices Unknown Pennsylvania Practices In January 2004, Janssen Pharmaceuticals, Inc. (JPI) received a subpoena from the Office of the Inspector General of the United States Office of Personnel Management seeking documents concerning sales and marketing of, any and all payments to physicians in connection with sales and marketing of RISPERDAL from 1997 to 2002. Documents subsequent to 2002 have also been requested by the Department of Justice. An additional subpoena seeking information about marketing of, and adverse reactions to, RISPERDAL was received from the United States Attorney's Office for the Eastern District of Pennsylvania in November 2005. Numerous subpoenas seeking testimony from various witnesses before a grand jury were also received. JPI cooperated in responding to these requests for documents and witnesses. The United States Department of Justice and the United States Attorney's Office for the Eastern District of Pennsylvania (the Government) are continuing to actively pursue both criminal and civil actions. In February 2010, the Government served Civil Investigative Demands seeking additional information relating to sales and marketing of RISPERDAL and sales and marketing of INVEGA . The focus of these matters is the alleged promotion of RISPERDAL and INVEGA for off-label uses. In an article dated January 5, 2012, the parent company of JPI, Johnson & Johnson, is said to pay more than $1 billion to the Government and most states to resolve a civil investigation into marketing of the antipsychotic Risperdal. However, when the final settlement will be announced isn't clear yet. Ortho-Mcneil-Janssen 1/1/2007 $327.07 Business & Trade Marketing Practices 07-CP-42-1438 South Carolina Pharmaceuticals, Inc. Practices On June 3, 2011, a South Carolina judge ordered Ortho-McNeil-Janssen Pharmaceuticals Inc. subsidiary of Johnson & Johnson to pay $327,073,700 to the state in its civil penalties for misleading the doctors about the safety and effectiveness of antipsychotic Risperdal. The state jury ruled that a J&J communication sent to doctors violated the state's unfair trade practices act by engaging in unfair or deceptive acts. The accusation was made specifically with regards to a dear doctor letter from November 2003, sent to over 7,000 physicians, and the drug label on Risperdal (risperidone) which were allegedly misleading about its safety and effectiveness. The jury also found that the violations of the South Carolina Unfair Trade Practices Act were willful, that the Risperdal label or package insert was unfair or deceptive and that the defendant willfully violated the Unfair Trade Practices Act. The penalty was to be determined by Judge Roger L. Couch. For the deceptive label, Judge Couch penalized Ortho-McNeil-Janssen $300 for each of the 509,499 sample boxes of Risperdal distributed in South Carolina from 1999 until April 2007, for a total of $152,849,700. Judge Couch said there clearly were other occasions when Ortho-McNeil-Janssen distributed deceptive labels, including publication in the Physician's Desk Reference and the defendant's website, but to find those violations would require speculation. He said the number of Risperdal samples given away in South Carolina is known. For the deceptive "dear doctor" letters, Judge Couch found that in South Carolina there were 7,184 letters mailed and 36,372 sales calls to doctors in which letters were distributed, for a total of 43,566 publications. He assessed a penalty of $4,000 for each deceptive "dear doctor" letter, for a total of $174,224,000. Janssen 1/1/2007 $327.00 Business & Trade Marketing Practices 2007-CP-42-1438 South Carolina Pharmaceuticals, Inc. Practices On June 3, 2011, a Johnson & Johnson (JNJ) unit was ordered by a South Carolina judge to pay more than $327 million in penalties for deceptively marketing the antipsychotic drug Risperdal as safer as and better than competing medicines. J&J's Ortho McNeil Janssen Pharmaceuticals unit repeatedly violated the state's consumer protection laws by sending a 2003 letter to doctors touting Risperdal as superior to rival drugs and including deceptive information in the product's warning label, Judge Roger Couch in Spartanburg, South Carolina, concluded. The drugmaker's executives allowed the profit at all costs mentality to cloud their judgment in connection with the drug's marketing campaign and its labeling, Couch said in his 17 page ruling. Janssen official said yesterday they'll appeal Couch's order and maintained the company fully disclosed Risperdal's health risks and properly marketed the antipsychotic medicine. South Carolina's lawyers, who originally sued the J&J unit in 2007 for making misleading claims about Risperdal, sought billions of dollars in penalties over the targeted marketing and labeling material. Johnson & Johnson 1/1/2004 $257.68 Business & Trade Marketing Practices 04-C-3967-D Louisiana Practices Maker Misrepresented Drug's Link to Diabetes, Govt. Claimed: The plaintiff is the state of Louisiana. Since 1994, Janssen Pharmaceutica, Inc. and Johnson & Johnson's drug Risperdal was marketed to treat schizophrenia. The State Attorney General's Office sued Janssen Pharmaceutica and its parent company, Johnson & Johnson, alleging violations of various state statutes including the Medical Assistance Programs Integrity Law. Plaintiffs' counsel claimed that in November 2003, Janssen Pharmaceutica sent a false and misleading letter to various health care providers misrepresenting and minimizing Risperdal's link to diabetes in order to obtain funds from the state Medicaid Program. Plaintiff's counsel alleged that Johnson & Johnson and Janssen sent "Dear Doctor" letters to more than 7,500 Louisiana health care providers stating that Risperdal was safer than other competing brand name antipsychotic drugs. The defendants continued to disseminate these false and misleading claims in more than 27,000 marketing calls to various health care providers, according to plaintiff's counsel. The Food and Drug Administration had previously sent a letter to Janssen Pharmaceutica, Inc. and Johnson & Johnson regarding the false and misleading claims that minimized the risk of diabetes associated with Risperdal and overstated the drug's supremacy to rival medicines, according to plaintiffs' counsel. Defense counsel argued that hyperglycemia-related adverse events had infrequently been reported in patients receiving Risperdal. A body of peer-reviewed research suggested that Risperdal was not associated with an increased risk of diabetes when compared