Johnson & Johnson (NYSE:JNJ) will work with the Indian government to compensate individuals harmed by the company’s ASR hip implants, which recalled in the US eight years ago, after data indicated a high failure rate, according to a new Reuters report.
Last week, an Indian government panel recommended that Johnson & Johnson pay at least $27,812 (INR 2.7 million) to each patient who received a faulty ASR hip implant, according to the report.
A total of approximately 93,000 people worldwide received an ASR implant, with about 4,700 from India, bringing the total compensation suggested by the government panel to a minimum of approximately $130.7 million.
“We are seeking to work with the Indian government to develop an appropriate process for providing further support and compensation for patients in need,” a J&J spokesperson told Reuters.
While the company is willing to work to compensate individuals harmed by the hip, J&J India exec Sushobhan Dasgupta told Indian newspaper Mint that it “will not pay people who had an ASR implant if they are doing well,” according to the report.
Dasgupta went on to tell the paper that J&J is not on board with the methodology used by the Indian panel, stating that the report has “factual inaccuracies” and that “the conclusions could also be inaccurate,” according to the Reuters report.
Johnson & Johnson paid $2 million to Indian patients for repeat surgeries and approximately $250,000 in related diagnostic costs under an ASR reimbursement program, but the Indian government criticized the company for not offering direct compensation, according to the report.
The company agreed to pay approximately $2.5 billion to settle thousands of suits in the US from patients reporting injury from the implants, according to Reuters.
Last month, court documents indicated that J&J subsidiary DePuy Orthopaedics is on the hook for approximately $246.1 million in damages in a bellwether case over its allegedly defective Pinnacle metal-on-metal hip implants.