October 2, 2014

Pharmacia loses appeal

The Wisconsin Court of Appeals has issued an opinion on a complex pharmaceutical pricing deception. That means millions in Medicaid money going back to the state. The Appeals Court on Wednesday affirmed a Dane County court’s decisions in its entirety, meaning litigation can proceed to the next phase for the State vs. Pharmacia.

Judge Richard Niess had earlier ruled against Pharmacia, saying the firm violated Wisconsin’s Medicaid fraud statute and Deceptive Trade Practices Act by inflating their drug prices to increase pharmacies’ reimbursement from Wisconsin Medicaid.

The four-year old case went to the Supreme Court, which also agreed with the Dane County court, but sent it to the Appeals Court to resolve some contested issues.

Attorney General J.B. Van Hollen said he’s pleased with the Appellate court’s decision, and says this is only the first of 36 pharmaceutical companies charged with using this tactic.

The state has obtained settlements of more than $17 million with 10 of the other defendants, as well as the judgment against Pharmacia.

WSAU