In another suit involving the Average Wholesale Price (AWP) issue, GlaxoSmithKline has agreed to pay $70 million to cancer patients and health plans to settle claims the pharmaceutical company overcharged for drugs that are used by cancer patients. Between 1 million and 5 million cancer patients nationwide who used the drugs Kytril and Zofran since 1991 will potentially be eligible for refunds. GlaxoSmithKline agreed to the settlement in August, but the agreement has to be approved by the U.S. District Court in Boston. It was alleged that GlaxoSmithKline overcharged patients and health plans by manipulating charges based on the Average Wholesale Price. The settlement is just one piece of an ongoing lawsuit filed in 2001 against 28 U.S. drug companies accused of defrauding patients by charging inflated prices.

Once the settlement receives court approval, which could happen in January, notices will be sent to Medicare beneficiaries who may be eligible for refunds. Notices will also be published in magazines and newspapers to reach cancer patients who have private insurance. Even though between 1 million and 5 million patients would potentially be eligible, fewer than 20% are expected to file claims. This is partly because many of the cancer patients have died. It’s important to make sure that others simply will find out about the settlement.

Kytril and Zofran are commonly used by patients who receive types of intravenous chemotherapy that carry high risks of nausea and vomiting. Pharmaceutical companies set their prices as high as the market allows, regardless of cost. As a result, prices in America exceed those of many other countries that institute price controls. The prices of most of the chemotherapy drugs and most of the supportive care drugs in North America are excessive compared to the prices in the rest of the world. Blue Cross Blue Shield of Massachusetts was also a plaintiff in the lawsuit.

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