US-based drugmaker Johnson & Johnson (NYSE: JNJ) is facing litigation under the False Claims Act, over the $2.4 billion blockbuster prostate cancer drug Zytiga (abiraterone acetate).
The case alleges that J&J fraudulently obtained a patent to block cheaper generic versions, enabling the company to charge the government higher prices.
The Patent Office earlier rejected a patent for Zytiga because the firm had not shown that the commercial success of the claimed invention - administration of abiraterone with prednisone - disproved obviousness.
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