11 Drugmakers Pay $125M In AWP Settlement
2 CommentsBy Ed Silverman // March 7th, 2008 // 8:53 pm
Big drugmakers are ponying up over the AWP, or average wholesale price scandal, according to a statement by attorneys who filed the case. For those unfamiliar, the stated AWP is used to set the price paid by consumers making Medicare Part B co-payments, as well as Medicare, insurers and other third-party payors that shell out for a drug. The lawsuit charged that consumers and third-party payors paid more than they should have because the drugmakers used false AWP reporting.
The issue has embroiled the entire industry. The latest settlement involves Abbott Labs, Amgen, Sanofi-Aventis, Baxter Healthcare, Bayer, Dey, Fujisawa, Pfizer’s Pharmacia unit, Watson Pharmaceuticals, Gensia Sicor Pharmaceuticals and ZLB Behring. And the drugs covered in the settlement include Aranesp, Epogen, Neupogen, Neulasta, Anzemet, Ferrlecit and Infed.
Previous settlements in the AWP litigation in federal court in Boston involved AstraZeneca, which made a $24 million to Medicare Part B patients using the Zoladex med, and Glaxo, which in 2006 paid $70 million over its Kytril and Zofran drugs. And after a trial, AstraZeneca and Bristol-Myers Squibb last November to pay nearly $14 million to insurers and consumers in Massachusetts for unfair trade practices.
steve
You say that Amgen made a settlement regarding overcharging. I don’t recall such an agreement or court order.
Please clarify.
Ed Silverman
Hi Steve,
I posted this item based on the press release issued Friday night - East Coast time - by the law firm that has been pressing these AWP lawsuits. That constitutes late-breaking news, which may explain why you’ve not heard about such a settlement previously.
I hope that helps
ed at Pharmalot