Judge suspends Georgia Medicaid policy on Makena

The U.S. District Court for the Northern District of Georgia ordered Georgia's Medicaid program to temporarily suspend a reimbursement policy that favors the use of compounded hydroxyprogesterone caproate as a cheaper alternative to preterm birth drug Makena hydroxyprogesterone caproate. The suspension came in an ongoing suit by KV Pharmaceutical Co. (OTCQB:KVPHQ) against the state's Department of Community Health (DCH) over a policy that requires physicians to prove Makena is medically necessary instead of compounded hydroxyprogesterone caproate. Judge Charles Pannell Jr. wrote in his ruling that DCH's policy would render the FDA approval process meaningless and expand the scope of compounding beyond its intended role. ...