11 Drugmakers Pay $125M In AWP Settlement

2 Comments

wholesale1.jpgBig 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.

Jump to comments

Share

Comments

  1. You say that Amgen made a settlement regarding overcharging. I don’t recall such an agreement or court order.

    Please clarify.

  2. 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

Subscribe

RSS Feed

Comments feed for this post only.

Tags

, , , , , , , , , , , , , , , , , ,

Clear

Clear

© 2007- 2008 Newark Morning Ledger Co.  All Rights Reserved.

Thanks for trying out the new Pharmalot printing tools. If you're got any suggestions for how we can help you print better, please let us know by clicking on the contact link at http://www.pharmalot.com/