Conway, Boehringer Ingelheim reach settlement in AWP case

Ashley Stinnett Jul. 15, 2009, 3:14pm


FRANKFORT, Ky. (Legal Newsline) - Kentucky Attorney General Jack Conway has announced a $4.5 million settlement Wednesday with a pharmaceutical manufacturer accused of fraudulently raising prices.

The settlement was reached with Germany-based Boehringer Ingelheim GmbH and its subsidiaries Boehringer Ingelheim Pharmaceuticals, Inc., Boehringer Ingelheim Roxane, Inc., Roxane Laboratories, Inc. and Ben Venue Laboratories, Inc.

This is the latest in a string of 47 lawsuits targeting drug companies over price inflation that allegedly cost the state's Medicaid program millions of dollars.

Medicaid programs rely on published average wholesale prices to calculate Medicaid drug-reimbursement rates.

The lawsuits alleged the defendants published false inflated prices which were not reflective of the actual consumer price the companies had originally made available.

"My office is committed to ensuring that drug companies truthfully report their prices and do not engage in false or misleading marketing of their products," Conway said.

"Taxpayers should not be footing the bill for these inflated drug prices."

Last month, Conway announced a $16 million verdict in Franklin Circuit Court against drug maker Sandoz. Since January 2008, Conway has collected $63 million for the Medicaid program, he said.

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