AIDS Healthcare Foundation sues AIDS drug maker for overcharging

AIDS Healthcare Foundation (AHF) will host a press teleconference on Wednesday, December 22^nd at 9:30 AM Pacific/12:30 PM Eastern to announce that it has filed a lawsuit against Johnson & Johnson’s Tibotec Therapeutics for overcharging AHF for AIDS drugs purchased under the 340B program.

The 340B pricing program is a government program that requires drug manufacturers to enter into Pharmaceutical Pricing Agreements to provide outpatient drugs to specific entities at a reduced price.  As stated in the lawsuit: “The entities eligible to participate in the 340B program are all, by and large, nonprofit and governmental safety net medical providers…The purpose of the 340B program is to allow these entities, through access to reduced drug prices, to increase the amount of safety-net services they can provide.”  AHF participates in the 340B program because it provides medical care to people with HIV/AIDS under the Ryan White CARE Act.

The Foundation’s lawsuit asserts that the maximum amount drug companies may charge 340B-eligible entities like AHF was lowered due to changes mandated by the Patient Protection and Affordable Care Act of 2010.  The change was effective January 1, 2010.  However, Tibotec did not implement the change and lower the price accordingly until at least July 1, 2010. 

The lawsuit states: “AHF therefore has overpaid defendants for drugs purchased under the 340B program during the period January 1, 2010 through at least June 30, 2010.  AHF estimates this overpayment to be in excess of $68,000.  AHF has requested payment of this sum.  Defendants have refused.”

AHF filed a similar lawsuit against Bristol Myers Squibb (BMS) last month as reported by the Los Angeles Times in AIDS charity sues Bristol Myers, saying it overcharged for medication (Stuart Pfeifer, November 29, 2010).

AIDS Healthcare Foundation (AHF), the largest global AIDS organization, currently provides medical care and services to more than 140,000 individuals in 22 countries worldwide in the US, Africa, Latin America/Caribbean, the Asia/Pacific region and Eastern Europe. www.aidshealth.org