Ala. attorney: 2 drug companies cheated Medicaid

Attorneys for Novartis Pharmaceuticals and SmithKline Beecham Corp. said the drugs were properly priced through a method understood by the state agency.

The trial, expected to last about two weeks, is the second to be held on more than 70 lawsuits filed by the state accusing pharmaceutical companies of overcharging Medicaid for prescription drugs. The first ended with a jury awarding the state $215 million against AstraZeneca Pharmaceuticals LP.

Similar lawsuits against pharmaceutical companies are pending in other states, including Mississippi, South Carolina, Utah, Hawaii and Alaska.

Jere Beasley, a Montgomery lawyer represening the state, told jurors Tuesday that Novartis and SmithKline Beecham committed fraud by causing the Medicaid program to pay too much for prescription drugs from 1991 to 2005.

"These two companies each cheated the state over and over and over again," Beasley told jurors.

He noted the financail crunch Alabama's Medicaid agency has faced in recent years.

"You're going to have the opportunity to bring about change and hopefully you can stop this sort of thing," Beasley said.

He indicated to jurors Monday he would seek a judgment of some $200 million against each of the two companies.

Attorneys for the two firms said Tuesday they reported fair, correct prices to Medicaid and did not commit fraud.