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Novartis Pharma to Appeal Verdict in Alabama Pricing Case

Tuesday, Novartis Pharmaceuticals Corp. (NVS) said that it would appeal a verdict in the Montgomery County Circuit Court stating that the State of Alabama's claims that the prices provided by the company to reporting services resulted in overpayment to pharmacists and doctors in the Alabama State Medicaid system as baseless.

The East Hanover, New Jersey-based company said that the jury rejected the State's claims for punitive damages. However, the jury decided against Novartis on the State's claims for compensatory damages, awarding $33 million.

Novartis was among 73 pharmaceutical manufacturers named in the lawsuit filed in 2005 by the Alabama Attorney General regarding the alleged overpayment.

Novartis maintained that it reported true and accurate prices, based on terms that have been known and used by all participants in pharmaceuticals markets.

NVS closed Tuesday's regular trading at $54.95, down $0.09 or 0.16%. However, the stock gained $0.02 or 0.04%, and traded at $54.94 in the after-hour trade.

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