McKesson & FDB

McKesson and First Data Bank (FDB)

In 2005 WW filed a complaint against pharmaceutical wholesaling giant McKesson Corporation ("McKesson") and pharmaceutical pricing publisher First DataBank, Inc. ("FDB"). The Complaint was based partially on facts discovered during the AWP Litigation, where WW is also co-lead counsel. The Complaint alleges that, beginning in August 2001, McKesson and FDB conspired to increase the mark-up between two pricing benchmarks, Wholesale Acquisition Cost ("WAC") and Average Wholesale Price ("AWP") from 20% to 25%. Plaintiffs have alleged this conspiracy caused third-party payors and consumers who made percentage-based co-payments and who paid the Usual & Customary ("U&C") or cash price to pay billions more for brand name prescription drugs.

Issue:

In August 1998, at the time InterMune acquired its license to commercialize Actimmune, it was approved to treat a single rare illness, chronic granulomatous disease. That disease affects no more than 400 people in the United States, primarily children, and at the time yielded sales of no more than $10 million annually.

Date Filed: June 10, 2008

Court: U.S. District Court

Location: Northern District of California

Current Status:

On March 19, 2008, the district court in Boston issued an order certifying classes for injunctive relief and for damages against McKesson.

Plaintiffs have resolved their claims against FDB and that settlement is awaiting preliminary approval. Plaintiffs anticipate that their claims against McKesson will be tried in late 2008 or early 2009.

Case Significance:

InterMune's fraud caused third party payors and their beneficiaries to pay an estimated $50,000 per year for treatments, even though those treatments were unproven and of no medical benefit. These consumers/patients, who were suffering from IPF, never would have paid for Actimunne had they known the drug was completely ineffective for treatment of IPF.

If you or someone you know has been injured by unfair and fraudulent practices from the drug Actimunne, please contact an attorney today.