EAST HANOVER, N.J., – The Alabama Supreme Court today overturned a jury verdict against Novartis Pharmaceuticals Corporation (NPC), and directed entry of judgment in favor of NPC.
The State of Alabama had claimed prices provided by NPC to reporting services resulted in overpayment to pharmacists and doctors in the Alabama State Medicaid system, and a Montgomery County Circuit Court jury initially found NPC liable.
NPC was among 73 pharmaceutical manufacturers named in a lawsuit filed in 2005 by the Alabama Attorney General. Through the appeal process, NPC demonstrated that it reported true and accurate prices, based on terms that have been known and used by all participants in pharmaceuticals markets, including Alabama Medicaid, for more than 30 years.
“We’re pleased by the Alabama Supreme Court’s ruling today,” said Ludwig Hantson, PhD, Head of Pharma North America, CEO, Novartis Pharmaceuticals Corporation. “NPC is committed to high ethical standards in the pricing, marketing and sale of all of our products.”