Kansas becomes the latest of about 27 states to bring actions for fraud, and seek recovery of damages, from large pharma companies. Several of these suits, in other states, have already resulted in settlements in excess of $100 million — with the payments coming from the pharma companies largely in proportion to the market share each held in any given FDA-approved drug, for which state reimbursement was sought. Schering has been a defendant in each of these — and the drum-beat continues. It would be surprising, ultimately, only if less than all 50 states win damages from these companies. Here’s a report from which I’ve clipped the snippet, below):
. . . .In the lawsuit, the State of Kansas says the pharmaceutical companies deliberately misreported drug price information in order to increase reimbursements made by the Kansas Medicaid program. Medicaid is the state-federal health care program for the poor. . . .
The Kansas Attorney General filed the complaint in Wyandotte County District Court. It accuses the defendants of violating the federal Medicaid statute, breach of contract, violating the Kansas Consumer Protection Act, fraud, and unjust enrichment. The suit asks the court to permanently prohibit the alleged illegal practices, and it seeks recovery of damages, penalties, and costs.
The Defendants in this lawsuit are: Takeda Pharmaceutical Company Limited, Abbott Labs, Wyeth, TAP Pharmaceutical Products, Inc., Schering Plough, Purdue Pharma LLP, Mylan Labs, Forest Labs, Boehringer, GlaxoSmithKline, Johnson & Johnson, Alza Corporation, Janssen Pharmaceutica Products, LP, McNeil-PPC, Inc., Ortho Biotech Products, LP, Ortho-McNeil Pharmaceutical, Inc., and DEY, Inc.. . . .
Obviously, the market participants with the largest sales in a particular category have the most to lose — nationwide, during just the last three years, perhaps $300 million, in Schering’s Cholesterol Franchise, alone. Ouch.