J&J;, Alkermes Drug Rejected by FDA

Johnson & Johnson and partner Alkermes Inc. said U.S. regulators rejected their twice-a-month form of the Risperdal schizophrenia drug, sending Alkermes shares down 68%.

Investors are concerned about more bad news from the Food and Drug Administration after a string of rejections or delays for medications. The FDA raised questions about research for Risperdal, Johnson & Johnson said.

Shares of Alkermes fell $10.86 to $5.15 on Nasdaq. New Brunswick, N.J.-based Johnson & Johnson shares fell $1.76 to $50.50 on the New York Stock Exchange.