Bristol-Myers-Squibb (maker of Tequin) Loses Court Ruling

Bristol-Myers-Squibb (maker of Tequin) Loses Court Ruling

A U.S. District Court dealt a major blow to several big pharmaceutical companies (among them Bristol-Myers-Squibb) denying the companies' motion to dismiss a nationwide class action law suit alleging they defrauded consumers by illegally inflating the cost of prescription drugs.

The suit targets the multi-million dollar pharmaceutical companies' practice of inflating the Average Wholesale Price (AWP) they reported through publications for certain drugs. In turn, Medicare, Medicaid, and third-party payers such as insurance companies reimburse pharmacies and physicians for drugs they provide based on the AWP. Individual patients also pay out-of-pocket costs on this basis. The trial begins November 6 in Boston. (Yahoo)