June 21st, 2007

AWP Decision

Earlier today, Judge Patti B. Saris of the US District Court for Massachusetts issued her decision in a case examining the pricing of pharmaceutical drugs reimbursed by Medicare and private insurers based on what’s known as the average wholesale price, or AWP. In the case, the plaintiffs alleged that four pharmaceutical companies including Johnson & Johnson (actually our Centocor and Ortho Biotech companies) engaged in unfair and deceptive trade practices in violation of Massachusetts laws, and grossly inflated the AWPs of certain drugs.

The judge dismissed the case against the Johnson & Johnson defendants.

The opinion is 185 pages long – and I understand our lawyers are still studying it. I can tell you that we are pleased with the judge’s finding of no liability for the Johnson & Johnson companies involved and with her ruling in their favor.

Some initial coverage here and here.

Leave a Reply

All comments will be reviewed before posting. Since this blog is about Johnson & Johnson, comments that don’t directly relate to the Company or to topics covered on this blog won’t be posted. Please see our comments policy for details.