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Los Angeles AIDS group sues GlaxoSmithKline over drug prices
Healthcare providers overpaying by nearly $500 million a year
Published Thursday, 09-Sep-2004 in issue 872
LOS ANGELES (AP) – One of the nation’s largest providers of AIDS care sued GlaxoSmithKline, claiming the pharmaceutical giant gouged agencies that serve the needy on the price of its AIDS drugs.
The suit was filed Wednesday in federal court by the AIDS Healthcare Foundation.
It accuses the British company of federal statutory violations, fraud, breach of contract, unjust enrichment and unfair competition.
The lawsuit seeks the return of an unspecified amount of money that the foundation allegedly overpaid for drugs, along with unspecified damages.
“When it comes to AIDS drug-pricing policies, we believe Glaxo is the original sinner,” foundation President Michael Weinstein said in a statement.
A call seeking comment from GlaxoSmithKline was not immediately returned Thursday.
The Los Angeles-based foundation operates clinics in California, Florida, New York, Africa and Central America.
It claims the pharmaceutical company overpriced AIDS drugs sold to the foundation, hospitals and others who took part in a federal drug discount program intended to help children, the disabled, homeless and poor.
The “340B” program requires drug makers to discount certain drugs that are sold to qualified providers, according to the suit.
The lawsuit cited a June report from the U.S. Department of Health and Human Services that concluded health care providers who took part in the program were overpaying for drugs by nearly $500 million a year.
The report did not identify any specific drugs or pharmaceutical companies.
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