Kentucky Circuit Court rules in favor of Watson in drug pricing litigation

Nov 17 2011

Watson Pharmaceuticals, Inc. (NYSE: WPI) today confirmed that a jury in the drug pricing litigation trial in the Kentucky Circuit Court for Franklin County rendered a verdict in favor of Watson on all counts in the litigation.

Beginning in July 2002, the Company and certain of its subsidiaries, as well as numerous other pharmaceutical companies, were named as defendants in various states and federal court actions including the case decided today. These actions allege improper or fraudulent reporting practices related to the reporting of average wholesale prices and wholesale acquisition costs of certain products, and that the defendants committed other improper acts in order to increase reimbursement to pharmacies and thereby increase prices and market shares. Additional actions in other courts remain pending.