Novartis to appeal verdict in Alabama pricing case

Novartis disputes the State of Alabama’s claims that the prices provided by Novartis Pharmaceuticals (NPC) to reporting services resulted in overpayment to pharmacists and doctors in the Alabama State Medicaid system.

NPC believes Alabama’s claims were unfounded because it reported true and accurate prices, based on terms that have been known and used by all participants in pharmaceuticals markets, including Alabama Medicaid, for more than 30 years.

NPC was among 73 pharmaceutical manufacturers named in a lawsuit filed in 2005 by the Alabama Attorney General, claiming that the average wholesale price and wholesale acquisition cost provided by pharmaceutical companies to price reporting services resulted in overpayment to pharmacists and doctors in the State Medicaid system.

The jury rejected the State’s claims for punitive damages but decided against NPC on the State’s claims for compensatory damages, awarding $33 million.