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GSK to appeal Alabama Medicaid judgement

GlaxoSmithKline has said it will appeal a court verdict against it regarding the way it reported prices for drugs reimbursed by Medicaid in the State of Alabama
GlaxoSmithKline (GSK) has said it will appeal a court verdict against it regarding the way it reported prices for drugs reimbursed by Medicaid in the State of Alabama.

The drug manufacturer is one of 73 pharmaceutical firms named in a lawsuit filed by the Alabama attorney general in January 2005. Both GSK and Novartis argued before the court in this round of litigation.

"We have said from the beginning that GSK reported true and accurate prices to the State of Alabama," said Chilton Varner, an attorney general with King & Spalding of Atlanta who represented GSK. "Evidence also shows that, although the state now says it was not being fairly treated, the state has not changed the rules since it filed the lawsuit more than three years ago."

Novartis was found liable for $33.2m in compensatory damages and no punitive damages by the Alabama Jury, which also found GSK liable for $80.9m compensatory damages with no punitive damages.

In February 2008, a separate jury ordered AstraZeneca (AZ) to pay the state $40m in compensatory damages and $175m in punitive damages. A state judge later reduced that amount to $120m because Alabama limits punitive damages to three-times the amount of compensatory damages.

2nd July 2008

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