Life Sciences

Alabama sets hearing date for Bristol-Myers Squibb case

Pharma Compliance Alert, July 30, 2008

Alabama Attorney General Troy King successfully prosecuted AstraZeneca, GlaxoSmithKline, and Novartis for price fraud. Next up: Bristol-Myers Squibb (BMS).

Montgomery County Circuit Judge Charles Price set an October trial date for the case against BMS, according to an Associated Press article. Abbott Laboratories and Sandoz, a Novartis subsidiary, were scheduled to go to trial with BMS, but Price delayed those trials.

King filed suit against 73 pharmaceutical companies in 2005, claiming the companies illegally inflated prices. In February, a jury found AstraZeneca guilty of fraud. In July, a separate jury found Novartis and GlaxoSmithKline guilty of defrauding Medicaid, but awarded compensatory damages without punitive damages. AstraZeneca had its judgment reduced when it appealed the case. Novartis and GlaxoSmithKline plan to appeal their verdicts.

Two pharmaceutical companies, Dey and Takeda Pharmaceuticals, collectively agreed to pay $6.75 million to settle with the state.

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