GSK SETTLES AWP INFLATION CLAIMS IN THE U.S.

British drugmaker GlaxoSmithKline (GSK) announced it has reached civil settlements in the U.S. to resolve most of the litigation about the average wholesale price (AWP) of certain GSK medicines. The company has agreed to a nationwide settlement of $70 million to resolve class-action claims filed on behalf of certain individuals, health plans and insurance companies.

This settlement includes all claims filed against GSK in a consolidated multidistrict litigation pending in federal court in Boston. In addition, the company has reached civil settlements in AWP litigation filed by the attorneys general of New York, California, Connecticut, Nevada, Montana and Arizona, as well as potential claims by 34 other states and the District of Columbia.

The total amount of the settlements is covered by GSK's existing legal reserve.

AWP is a reference price used by many government and private insurers to set reimbursement rates for doctors and pharmacies that buy and dispense drugs. Plaintiffs contended that the AWPs were artificially inflated, which they say resulted in overpayments to doctors and pharmacies.