October 16, 2009

Court Rules AstraZeneca Overcharged KY Medicaid Program

AstraZeneca yesterday was found liable by a Kentucky court of ripping off that state's Medicaid program.

"AstraZeneca, maker of popular drugs such as Crestor, Nexium and Seroquel, must reimburse Kentucky $14.72 million after overcharging its Medicaid program between November 1999 and March 2005.

"AstraZeneca lied when reporting its average wholesale price on a number of drugs, said George Galland, representing Kentucky in the civil fraud trial that ended Thursday.

"AstraZeneca inflated its prices between 20 and 30 percent depending on the drug, Galland told the jury in his summation.

"The average wholesale price is calculated by adding a percentage to the price wholesalers pay for the drug. The percentage, usually between 1 and 3 percent, represents a profit that the wholesalers get after selling the drugs to pharmacies."

These pharma companies sure are bottomless where it comes to deceit.

Posted by Philip Dawdy at October 16, 2009 12:00 PM
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Comments

Gosh! GSK found to be engaged in active deceit (but only on the balance of probabilities, it should be said), on Tuesday, and AZ today. Just makes me so proud to be British!

Even prouder, when I consider the possibility that these two have been fucking the NHS, in Britain, for years, and our government(s) is doing fuck all about it.

Matt

Posted by: Matthew Holford at October 16, 2009 04:37 PM

It took the jury only two hours to reach their verdict and award damages. That's lightning fast. There must have been some really damning evidence presented by the Plaintiff.

I love this line from AstaZeneca's legal weasel:

“It’s time, and today would be a good time, for Kentucky Medicaid to take responsibility for the decisions they made,” Zweifach said.

This is the sort of line used by people who have absolutely no intention of taking any responsibility for theirs.

Oh, and @Matt 4:37, The Frankfort Bugle also reports in the last line:

The state is taking GlaxoSmithKline, the United Kingdom’s leading drugmaker, to trial for fraud charges in November.

So, stay tuned.

Posted by: marlborojones at October 16, 2009 06:01 PM

marlborojones quoted:
"The state is taking GlaxoSmithKline, the United Kingdom’s leading drugmaker, to trial for fraud charges in November."

Criminal charges? And fraud, too (which is notoriously difficult to prove, given that it swings on bringing proof of the necessary intent to take an advantage dishonestly (ie, the mental state of alleged perp))? GSK better hope that "beyond reasonable doubt" is a hurdle too far for KY, because if the State proves that charge, then the Company's going to be in and out of the dock for fucking years, as the other 49 states line up with the selfsame evidence!

Matt

Posted by: Matthew Holford at October 16, 2009 08:13 PM
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