Boston, MA 06/20/2014 (wallstreetpr) – It is the time for celebration for Bristol-Myers Squibb Co (NYSE:BMY) as it has won a case against Pennsylvania. Now it doesn’t need to pay $28 million for the drug pricing dispute to Pennsylvania. Bristol-Myers was sued by Pennsylvania in the year 2004. It was alleged for inflating the wholesale prices of the treatment drugs. They are the prices considered by the federal health programs to reimburse physicians. Apart from Pennsylvania, there were other 26 states who filed the case against the company.
The Supreme Court Decision
The Supreme Court of Pennsylvania favored Bristol-Myers Squibb Co (NYSE:BMY) It talked about the $164 million of drug rebates that Bristol-Myers has paid to the state. Considering all the facts, it denied the money award. The court denied the monetary component on the basis of Commonwealth’s failure in the matter of rebate monies paid by the drug manufacturers.
The Lower Court Decision
The Supreme Court decision came against the decision of the lower court in matter of the money award given in year 2010 when it said the company to be involved in unfair and deceptive practices. At that time, Bristol-Myers was barred from disclosing average wholesale prices to state agencies. It was also said to pay the money damages.
The Relief Sets In
Bristol-Myers Squibb Co (NYSE:BMY) defended its case well in the Supreme Court hearing and pleaded to consider the rebates for offsetting the damages. The Supreme Court stated that it even had the issues on the lower court’s “credibility judgments.” However, it thought it better to confine the case to the rebate and money award issue.
The court even said that if the Commonwealth Court has analyzed the issue on the basis of rebates to prices, the case could have solved much earlier than today. The Supreme Court decision has finally brought relief to Bristol-Myers Squibb Co (NYSE:BMY) and has put an end to the long-running case.
