Attorney General's News Release

July 14, 2004

Nixon obtains more than $900,000 for state entities, including $202,000 for MU hospital, from settlement of anti-cancer drug suit

Jefferson City, Mo. — Attorney General Jay Nixon announced today the state of Missouri has received $909,360 from the settlement of a lawsuit involving pharmaceutical manufacturer Bristol-Myers Squibb. The money will be distributed among several state entities, including the Medicaid Reimbursement Fund, which will receive $445,918; and University of Missouri Hospital and Clinics, which will receive $202,730.

The 50-state antitrust suit, settled in November 2003, alleged Bristol-Myers Squibb overcharged patients for the prescription drug Taxol, which is commonly used in chemotherapy treatments for cancer patients.

Missouri's portion of the settlement is the 12th highest among the 50 states. Attorney General Nixon worked to obtain a higher settlement than one based strictly on the state's population by providing detailed information about University of Missouri Hospital and Clinics' purchases of Taxol and data on self-insured employees from the four health care plans that insure state employees. Researching and providing this information to the fund administrators increased Missouri's portion of the settlement by $208,000.

"Missourians will benefit in many ways from receiving funds from this settlement. I am proud of our efforts to secure this money to help patients and protect consumers," Nixon said.

In addition to allocations to the Medicaid Reimbursement Fund and University of Missouri Hospital and Clinics, Missouri's portion of the settlement is being divided among the:

• Antitrust Revolving Fund, $90,936.
• Merchandising Practices Revolving Fund, $90,936.
• University of Missouri Medical Benefits Plan, $40,208.
• Missouri Consolidated Health Care Plan, $13,402.
• Missouri Department of Transportation and Missouri State Highway Patrol Medical and Life Insurance Plan, $21,287.
• Conservation Employees Trust Fund, $3,943.

In May, 296 Missouri consumers received settlement checks from Bristol-Myers Squibb totaling $163,989. These consumers paid all or part of the cost of treatment with Taxol or paclitaxel, its generic equivalent, from Jan. 1, 1999, to Feb. 28, 2003, and submitted valid claims to the court.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818