COM. v. TAP PHARMACEUTICAL PRODUCTS, INC.

No. 85 MAP 2011

94 A.3d 350 (2014)

COMMONWEALTH of Pennsylvania v. TAP PHARMACEUTICAL PRODUCTS, INC.; Abbott Laboratories; AstraZeneca PLC; AstraZeneca, Holdings, Inc.; AstraZeneca Pharmaceuticals LP; AstraZeneca LP; Bayer AG; Bayer Corporation; Smithkline Beecham Corporation d/b/a Glaxosmithkline; Pfizer, Inc.; Pharmacia Corporation; Johnson & Johnson; Alza Corporation; Centrocor, Inc.; Ethicon, Inc.; Janssen Pharmaceutical Products, L.P.; McNeil-PPC, Inc.; Ortho Biotech, Inc.; Ortho Biotech Products; L.P.; Ortho-McNeil Pharmaceutical, Inc; Amgen, Inc.; Immunex Corporation; Bristol-Myers Squibb Company; Baxter International Inc.; Baxter Healthcare Corporation; Immuno-U.S., Inc.; Aventis Pharmaceuticals, Inc.; Aventis Behring, L.L.C.; Hoechst Marion Roussel, Inc., Boehringer Ingelheim Corporation; Boehringer Ingelheim Pharmaceuticals, Inc.; Ben Venue Laboratories; Bedford Laboratories; Roxane Laboratories; Schering-Plough Corporation; Warrick Pharmaceuticals Corporation; Schering Sales Corporation; Dey, Inc. Donna A. Boswell, Esq., Ann M. Vickery, Esq., and Joseph A. Young, Esq., Intervenors. Appeal of Bristol-Myers Squibb Company.

Supreme Court of Pennsylvania.

Resubmitted April 25, 2014.

Decided June 16, 2014.


Attorney(s) appearing for the Case

Peter F. Vaira, Esq. , Vaira & Riley, P.C., Philadelphia, for Joseph A. Young.

Jennings Fuqua Durand, Esq. , Robert C. Heim, Esq. , William T. McEnroe, Esq. , Albert Suh, Esq. , Dechert LLP, Philadelphia, Stephen Allen Loney Jr., Esq. , Hogan & Hartson, LLP, Philadelphia, C. Michael Moore, Esq. , Sonnenschein Nath & Rosenthal LLP, Jack Mentzer Stover, Esq. , Jayson R. Wolfgang, Esq. , Buchanan Ingersoll & Rooney PC, Harrisburg, David Newmann, Esq. , Philadelphia, Steven M. Edwards, Esq. , Lyndon M. Tretter, Esq. , James S. Zucker, Esq. , for Bristol-Myers Squibb Company.

Brian P. Kavanaugh, Esq. , Helen E. Witt, Esq. , Kirkland & Ellis, LLP, Alan Klein, Esq. , Duane Morris, L.L.P., Jane S. Park, Esq. , Kirkland & Ellis, LLP, Ceylan A. Ayasli, Esq. , Lauren O. Cassazza, Esq. , Anne M. Sidrys, Esq. , for Boehringer Ingelheim Corporation.

Steven Barley, Esq. , Kelleen McGinnis Scott, Esq. , Joseph H. Young, Esq. , for Amgen, Inc.

Megan L. Traversari, Esq. , Morgan Lewis & Bockius, L.L.P., Dana Elizabeth Becker, Esq. , Philadelphia, for Pfizer Inc. and Pharmacia Corporation.

Joseph Stephen Betsko, Esq. , Kathleen Granahan Kane, Esq. , James A. Donahue, Esq. , PA Office of Attorney General, Judith Pensof Meyer, Esq. , J.P. Meyer Associates, Christina Marie Philipp, Esq. , Haviland Hughes , Dean Richard Phillips, Esq. , Elliott Greenleaf & Siedzikowski, P.C., Blue Bell, William H. Platt II, Esq. , Platt Fleischaker LLP, William O. Crutchlow, Esq. , Norman Wesley Marden, Esq. , Harrisburg, John M. Elliott, Esq. , Blue Bell, for Commonwealth of Pennsylvania.

Frederick Edward Blakelock, Esq. , Gibbons, P.C., Philadelphia, for Immunex Corporation.

John W. Boyle, Esq. , Matthew Renwick Divelbiss , John Daniel Goetz, Esq. , Jones Day, Pittsburgh, Alexandra Makosky, Esq. , Pepper Hamilton, L.L.P., Carlisle, Joseph Uhl Metz, Esq. , Dilworth Paxson, L.L.P., Harrisburg, Thomas B. Schimidt III, Esq. , for TAP Pharmaceutical Products, Inc.

Lisa Ann Matthewson, Esq. , Welsh & Recker, P.C., Amy Beth Carver, Esq. , Philadelphia, for Bayer Corporation.

Walter W. Cohen, Esq. , Kevin Jospeh Kehner, Esq. , Obermayer Rebmann Maxwell & Hippel, L.L.P., Harrisburg, for Johnson & Johnson.

Joseph Gerard DeRespino, Esq. , DeRespino & Dougher, P.C., Philadelphia, for Baxter International Inc.

John Charles Dodds, Esq. , Maire Ellen Donovan , Abby Jane Elgart, Esq. , Abby Jane Elgart, Esq. , Barry L. McCoy Jr., Esq. , Erica June Smith-Klocek, Esq. , Morgan Lewis & Bockius, L.L.P., Philadelphia, for Pfizer, Inc.

Frank Richard Emmerich Jr., Esq. , Conrad O'Brien PC, Philadelphia, Jennifer A. Walker, Esq. , for Amgen, Inc.

Brian T. Feeney, Esq. , Greenberg Traurig, LLP, Philadelphia, Bryan Lynn Norton, Esq. , Lydecker, Lee, Behar, Berga & deZayas, Brett A. Schlossberg, Esq. , Fox Rothschild, L.L.P., for Aventis Pharmaceuticals, Inc.

John G. Harkins Jr., Esq. , Harkins Cunningham, LLP, Philadelphia, for AstraZeneca Pharmaceuticals, LP.

Michael Brian Hayes, Esq. , Montgomery, McCracken, Walker & Rhoads, L.L.P., Philadelphia, for Schering Sales Corporation and Warrick Pharmaceuticals Corporation.

Susannah R. Henderson, Esq. , Morgan Lewis Bockius, L.L.P., for Pharmacia Corporation.

Bridget Elizabeth Montgomery, Esq. , Eckert Seamans Cherin & Mellott, LLC, Harrisburg, for Bayer AG.

Lathrop Barrere Nelson III, Esq. , Richard L. Scheff, Esq. , Montgomery, McCracken, Walker & Rhoads, L.L.P., Philadelphia, for Merck & Co., Inc.

Eric Wilson Sitarchuk, Esq. , Ballard Spahr Andrews & Ingersoll, L.L.P., Philadelphia, for Immunex Corporation.

BEFORE: CASTILLE, C.J., SAYLOR, EAKIN, BAER, TODD, McCAFFERY, STEVENS, JJ.


OPINION ANNOUNCING THE JUDGMENT OF THE COURT

Justice SAYLOR.

This case is among a number of civil actions brought by state attorneys general against pharmaceutical companies nationwide challenging the propriety of prescription drug pricing, in particular, as it impacts third-party reimbursement for brand-name drug purchases subsidized by government social welfare programs. The Commonwealth has centered its claims upon alleged overpayments tied to...

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