A jury in West Virginia has cleared drugmaker Schering-Plough of contravening state laws regarding average wholesale price reporting rules.
US federal law requires companies making medicines to provide Medicaid with the average wholesale prices of products that they wish to be reimbursed by the programme. West Virginia had alleged that S-P overstated the prices of certain asthma products sold by its generic subsidiary Warrick Pharmaceuticals, inflating the revenues it received from prescriptions for the products under the Medicaid system.
The state claimed that the drugmaker was selling the drugs outside the Medicaid programme for a lower price, in contravention of the law.
In a statement, Schering-Plough said it was “pleased with the positive jury verdict in this case and looks forward to continuing to put litigation matters from the past behind it.”
The West Virginia verdict is not the end of the affair though. Other cases, including states, continue to challenge the company regarding its price reporting policy.
Other states that have questioned S-P’s reporting in the past include Connecticut, Montana, Texas, Illinois and Minnesota.
Earlier this year, S-P was named among 48 companies in a suit brought by the state of Illinois alleging they fraudulently inflated the average wholesaler prices for their medicines for more than 10 years.