N.Y. sues GSK, Pharmacia for bribery - Chain Pharmacy Drug Store News - Find Articles

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N.Y. sues GSK, Pharmacia for bribery - Chain Pharmacy

Drug Store News, March 3, 2003

NEW YORK -- The New York Attorney General's office three weeks a go charged two

leading pharmaceutical manufacturers, GlaxoKline and Pharmacia, with

bribing doctors through kickbacks, paid directly out of government health plans

like Medicare and Medicaid, in order to gain marketshare for their respective

medications.

Aventis has been sent a pre-litigation notice that it also may be named in the

suit.

GlaxoKline had responded that the state government made its bed and is now

shifting blame for " public policy decisions and for budget shortfalls [onto] the

pharmaceutical industry " so they don't have to lie in that bed.

" We are seeking restitution for consumers and the state and new reforms that

will help maintain the integrity of the doctor-patient relationship by making

sure that medical decisions are based on sound clinical guidelines, not on

whether a manufacturer's drug delivers hi g her compensation to a provider, "

announced Attorney General Eliot Spitzer.

New York contends that the three pharmaceutical companies gave discounts to

doctors and pharmacies that bought their drugs. Those doctors and pharmacies

then would turn a profit out of those discounts when they applied for

reimbursement under Medicare and Medicaid--for the full, non-discounted rates.

" The companies are alleged to have reported an inflated average wholesale price

charged to doctors, pharmacists and other health care providers, " the office of

the New York State Attorney General stated. " The companies exploit this spread'

to market their drugs, improperly inducing doctors to prescribe drugs and

thereby increase companies' market share. "

GlaxoKline, on the other hand, countered that because states tie their

reimbursements to average wholesale price calculations, a price tabulated and

reported by third party vendors, they have " known for decades " that doctors and

pharmacies are reimbursed a greater amount than what they've paid for on certain

medications.

" The attorney general is trying to hold GSK and other pharmaceutical companies

accountable for the state's own conscious decision to reimburse doctors and

pharmacies more for drugs than they paid for them, " the company stated.

Aventis, who has not yet been named a party in the lawsuit, answered nonetheless

that it had ceased reporting AWP of its medications as of August 2001 because

that reporting was the nexus for confusion throughout the industry. " We have

always based our average wholesale price on the 'sticker' price to wholesalers, "

Aventis spokeswoman Munzer told Drug Store News. " To minimize

confusion, we stopped reporting [AWP], " altogether she said.

COPYRIGHT 2003 Reproduced with permission of the copyright holder. Further

reproduction or distribution is prohibited without permission.

COPYRIGHT 2003 Gale Group

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[Guest guest]

http://findarticles.com/p/articles/mi_m3374/is_3_25/ai_98488758

N.Y. sues GSK, Pharmacia for bribery - Chain Pharmacy

Drug Store News, March 3, 2003

NEW YORK -- The New York Attorney General's office three weeks a go charged two

leading pharmaceutical manufacturers, GlaxoKline and Pharmacia, with

bribing doctors through kickbacks, paid directly out of government health plans

like Medicare and Medicaid, in order to gain marketshare for their respective

medications.

Aventis has been sent a pre-litigation notice that it also may be named in the

suit.

GlaxoKline had responded that the state government made its bed and is now

shifting blame for " public policy decisions and for budget shortfalls [onto] the

pharmaceutical industry " so they don't have to lie in that bed.

" We are seeking restitution for consumers and the state and new reforms that

will help maintain the integrity of the doctor-patient relationship by making

sure that medical decisions are based on sound clinical guidelines, not on

whether a manufacturer's drug delivers hi g her compensation to a provider, "

announced Attorney General Eliot Spitzer.

New York contends that the three pharmaceutical companies gave discounts to

doctors and pharmacies that bought their drugs. Those doctors and pharmacies

then would turn a profit out of those discounts when they applied for

reimbursement under Medicare and Medicaid--for the full, non-discounted rates.

" The companies are alleged to have reported an inflated average wholesale price

charged to doctors, pharmacists and other health care providers, " the office of

the New York State Attorney General stated. " The companies exploit this spread'

to market their drugs, improperly inducing doctors to prescribe drugs and

thereby increase companies' market share. "

GlaxoKline, on the other hand, countered that because states tie their

reimbursements to average wholesale price calculations, a price tabulated and

reported by third party vendors, they have " known for decades " that doctors and

pharmacies are reimbursed a greater amount than what they've paid for on certain

medications.

" The attorney general is trying to hold GSK and other pharmaceutical companies

accountable for the state's own conscious decision to reimburse doctors and

pharmacies more for drugs than they paid for them, " the company stated.

Aventis, who has not yet been named a party in the lawsuit, answered nonetheless

that it had ceased reporting AWP of its medications as of August 2001 because

that reporting was the nexus for confusion throughout the industry. " We have

always based our average wholesale price on the 'sticker' price to wholesalers, "

Aventis spokeswoman Munzer told Drug Store News. " To minimize

confusion, we stopped reporting [AWP], " altogether she said.

COPYRIGHT 2003 Reproduced with permission of the copyright holder. Further

reproduction or distribution is prohibited without permission.

COPYRIGHT 2003 Gale Group

1 - 2 - Next

Find Featured Titles for: Computers & Technology

Advanced Battery Technology

America's Network

BT Catalyst

Baseline

CADalyst

Cable World

Channel 3

Channel Insider, The

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Computer Technology Review

Dev Source

PC Magazine

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[Guest guest]

http://findarticles.com/p/articles/mi_m3374/is_3_25/ai_98488758

N.Y. sues GSK, Pharmacia for bribery - Chain Pharmacy

Drug Store News, March 3, 2003

NEW YORK -- The New York Attorney General's office three weeks a go charged two

leading pharmaceutical manufacturers, GlaxoKline and Pharmacia, with

bribing doctors through kickbacks, paid directly out of government health plans

like Medicare and Medicaid, in order to gain marketshare for their respective

medications.

Aventis has been sent a pre-litigation notice that it also may be named in the

suit.

GlaxoKline had responded that the state government made its bed and is now

shifting blame for " public policy decisions and for budget shortfalls [onto] the

pharmaceutical industry " so they don't have to lie in that bed.

" We are seeking restitution for consumers and the state and new reforms that

will help maintain the integrity of the doctor-patient relationship by making

sure that medical decisions are based on sound clinical guidelines, not on

whether a manufacturer's drug delivers hi g her compensation to a provider, "

announced Attorney General Eliot Spitzer.

New York contends that the three pharmaceutical companies gave discounts to

doctors and pharmacies that bought their drugs. Those doctors and pharmacies

then would turn a profit out of those discounts when they applied for

reimbursement under Medicare and Medicaid--for the full, non-discounted rates.

" The companies are alleged to have reported an inflated average wholesale price

charged to doctors, pharmacists and other health care providers, " the office of

the New York State Attorney General stated. " The companies exploit this spread'

to market their drugs, improperly inducing doctors to prescribe drugs and

thereby increase companies' market share. "

GlaxoKline, on the other hand, countered that because states tie their

reimbursements to average wholesale price calculations, a price tabulated and

reported by third party vendors, they have " known for decades " that doctors and

pharmacies are reimbursed a greater amount than what they've paid for on certain

medications.

" The attorney general is trying to hold GSK and other pharmaceutical companies

accountable for the state's own conscious decision to reimburse doctors and

pharmacies more for drugs than they paid for them, " the company stated.

Aventis, who has not yet been named a party in the lawsuit, answered nonetheless

that it had ceased reporting AWP of its medications as of August 2001 because

that reporting was the nexus for confusion throughout the industry. " We have

always based our average wholesale price on the 'sticker' price to wholesalers, "

Aventis spokeswoman Munzer told Drug Store News. " To minimize

confusion, we stopped reporting [AWP], " altogether she said.

COPYRIGHT 2003 Reproduced with permission of the copyright holder. Further

reproduction or distribution is prohibited without permission.

COPYRIGHT 2003 Gale Group

1 - 2 - Next

Find Featured Titles for: Computers & Technology

Advanced Battery Technology

America's Network

BT Catalyst

Baseline

CADalyst

Cable World

Channel 3

Channel Insider, The

Communications News

Computer Technology Review

Dev Source

PC Magazine

--~--~---------~--~----~------------~-------~--~----~

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" Parents Against TeenScreen " group.

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[Guest guest]

http://findarticles.com/p/articles/mi_m3374/is_3_25/ai_98488758

N.Y. sues GSK, Pharmacia for bribery - Chain Pharmacy

Drug Store News, March 3, 2003

NEW YORK -- The New York Attorney General's office three weeks a go charged two

leading pharmaceutical manufacturers, GlaxoKline and Pharmacia, with

bribing doctors through kickbacks, paid directly out of government health plans

like Medicare and Medicaid, in order to gain marketshare for their respective

medications.

Aventis has been sent a pre-litigation notice that it also may be named in the

suit.

GlaxoKline had responded that the state government made its bed and is now

shifting blame for " public policy decisions and for budget shortfalls [onto] the

pharmaceutical industry " so they don't have to lie in that bed.

" We are seeking restitution for consumers and the state and new reforms that

will help maintain the integrity of the doctor-patient relationship by making

sure that medical decisions are based on sound clinical guidelines, not on

whether a manufacturer's drug delivers hi g her compensation to a provider, "

announced Attorney General Eliot Spitzer.

New York contends that the three pharmaceutical companies gave discounts to

doctors and pharmacies that bought their drugs. Those doctors and pharmacies

then would turn a profit out of those discounts when they applied for

reimbursement under Medicare and Medicaid--for the full, non-discounted rates.

" The companies are alleged to have reported an inflated average wholesale price

charged to doctors, pharmacists and other health care providers, " the office of

the New York State Attorney General stated. " The companies exploit this spread'

to market their drugs, improperly inducing doctors to prescribe drugs and

thereby increase companies' market share. "

GlaxoKline, on the other hand, countered that because states tie their

reimbursements to average wholesale price calculations, a price tabulated and

reported by third party vendors, they have " known for decades " that doctors and

pharmacies are reimbursed a greater amount than what they've paid for on certain

medications.

" The attorney general is trying to hold GSK and other pharmaceutical companies

accountable for the state's own conscious decision to reimburse doctors and

pharmacies more for drugs than they paid for them, " the company stated.

Aventis, who has not yet been named a party in the lawsuit, answered nonetheless

that it had ceased reporting AWP of its medications as of August 2001 because

that reporting was the nexus for confusion throughout the industry. " We have

always based our average wholesale price on the 'sticker' price to wholesalers, "

Aventis spokeswoman Munzer told Drug Store News. " To minimize

confusion, we stopped reporting [AWP], " altogether she said.

COPYRIGHT 2003 Reproduced with permission of the copyright holder. Further

reproduction or distribution is prohibited without permission.

COPYRIGHT 2003 Gale Group

1 - 2 - Next

Find Featured Titles for: Computers & Technology

Advanced Battery Technology

America's Network

BT Catalyst

Baseline

CADalyst

Cable World

Channel 3

Channel Insider, The

Communications News

Computer Technology Review

Dev Source

PC Magazine

--~--~---------~--~----~------------~-------~--~----~

You received this message because you are subscribed to the Google Groups

" Parents Against TeenScreen " group.

To post to this group, send email to Parents-Against-TeenScreengooglegroups