Boston, MA 09/26/2014 (wallstreetpr) – After a long fight AbbVie Inc (NYSE:ABBV) and Abbott Laboratories (NYSE:ABT) have finally won their claims against the dismissal of AndroGel testosterone drug and Humira arthritis drug. There was a lawsuit filed against both of these companies that accused that the above mentioned two drugs caused health plans to pay unnecessary amount for them. The result of this case was long awaited. A federal judge in Chicago dismissed all the allegations put by a third party on both the companies.
Insights of the decision:
Robert Dow, U.S. District Judge gave his decision on Thursday saying that the accusing party New England Carpenters Health and Welfare Fund failed to prove its point. Dow said that New England Carpenters Health and Welfare Fund couldn’t provide sufficient evidences that could prove Abbott Laboratories (NYSE:ABT) and AbbVie Inc (NYSE:ABBV) guilt. It accused both ABT and ABBV saying that they partnered with a lot of pharmacies and hospitals across the country in order to increase the sales of AndroGel and Humira illegally. These companies offered attractive coupons and cards to all the patients to convince them for using these two drugs. As per the reports, patients could avoid co-payments with the help of these cards and coupons. Plaintiff also accused both of them of asking various pharmacies to conceal subsidies by processing them not as a discount, but as secondary insurance.
The accuser was looking forward to unspecified triple damages under federal racketeering law known as RICO, but due to its failure to represent ample evidences; it couldn’t prove Abbott Laboratories (NYSE:ABT) and AbbVie Inc (NYSE:ABBV) wrong. Dow, while announcing results, said that he might lack jurisdiction in a lawsuit over the remaining claims as well. The next hearing on this issue will be held on October 7, 2014. AndroGel is an efficient treatment for low testosterone level of men, while Humira treats plaque psoriasis and rheumatoid arthritis.
