A Common Industry Practice: False Average Wholesale Price (AWP)?

GlaxoSmithKline agreed to pay $70 million to settle state Medicaid claims involving Zofran and Kytril, drugs used for the treatment of cancer.  In what a Glaxo spokesperson claimed was a common practice, the allegations included claims that the prices set for these drugs were based on fraudulent inflated figures provided by Glaxo, resulting in increased reimbursement from government programs.

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