Government

AIDS patients file class-action suit over Norvir price hike

NEWS IN BRIEF — Posted May 10, 2004

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Two AIDS patients filed a proposed class-action lawsuit against the makers of the protease inhibitor Norvir. They claim that Abbott Laboratories leveraged monopoly power when, in December 2003, it raised the wholesale price of the drug to $1,028.71 for 120 capsules of 100 mg, up from $205.74.

The 400% price increase outraged doctors and patients. The lawsuit, filed in the U.S. District Court for the Northern District of California in April, is believed to be the first seeking class-action status on behalf of patients nationwide who have had to pay the higher prices.

"It's one thing for a pharmaceutical company to make money, but Abbott's unjustified price increase has taken unfair advantage of the very people it should be trying to help," said Joseph Tabacco Jr., the attorney representing the patients.

Abbott has said its pricing decision was not made lightly and that the increase was justified because the drug's role has changed since its 1996 introduction. The company also notes that Norvir "represents a fraction, typically one-fifth, of the daily cost of therapy" for HIV patients.

Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/05/10/gvbf0510.htm.

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