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Schering-Plough to Appeal Jury Decision in Missouri Reimbursement Case
Date:10/30/2008

ST. LOUIS, Oct. 30 /PRNewswire-FirstCall/ -- Schering-Plough Corporation (NYSE: SGP) said today that it strongly believes that the decision reached by a jury in Missouri related to reimbursement by Missouri's Medicaid program of certain products sold by Warrick Pharmaceuticals, the company's former generics subsidiary, was incorrect. The company said it will appeal and continues to maintain that it complied with all applicable laws and regulations governing reimbursement rules in Missouri.

The company has prevailed in two other reimbursement cases.

In November 2007, the U.S. District Court for the District of Massachusetts found no liability for Warrick Pharmaceuticals in a class action lawsuit involving several pharmaceutical companies and the setting of average wholesale prices (AWPs) for prescription products. In that case, the Court issued favorable rulings for the company and dismissed all claims relating to Schering-Plough's branded pharmaceutical products and Warrick's generic albuterol sulfate solution. The Court entered judgment in favor of Schering-Plough based on its ruling that Schering's AWP were not inflated and entered judgment in favor of Warrick based on its findings that Warrick's AWP had no effect on Medicare reimbursement and resulted in no damages to class plaintiffs.

In December 2005, a West Virginia jury ruled in favor of the company in a trial related to reimbursement by West Virginia's Medicaid program of certain asthma products sold by Warrick Pharmaceuticals. In the favorable verdict, the jury agreed with the company's position that in connection with reporting AWP the company complied with all applicable laws and regulations governing the reimbursement rules in West Virginia.

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SOURCE Schering-Plough Corporation
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