In State of Texas v. Par Pharmaceutical, Inc., et al., in State Court in Texas, the State alleged that the defendants conspired to overcharge the Texas Medicaid for certain prescription drugs. The State argued that the defendants reported inflated prescription drugs prices to the Texas Medicaid program.

The State contended that they based their Medicaid drug reimbursement rates to Texas pharmacists on the inflated prescription drug prices submitted by the defendants. The State alleged that the defendants used the inflated prices as an enticement to pharmacists to prescribe the defendants’ drugs to Medicaid patients.

In our analysis, we performed a detailed study of the cost and pricing structure of Texas pharmacists including their drug dispensing costs, operating costs, and drug procurement costs. Our analysis examined millions of drug pricing records from pharmacists participating in the Medicaid program. We also performed an analysis of the potential economic damages resulting from the alleged over-reimbursement associated with the defendants’ drugs.

Dr. Dwight Steward testified live at trial regarding these issues. We also provided testimony and analysis in several other related pharmaceutical drug pricing lawsuits brought by the State.