LOS ANGELES, June 11 /PRNewswire/ -- AIDS Healthcare Foundation (AHF) -- which recently sued drug maker Abbott Laboratories for publishing false statements deceiving the public about a 400 percent price hike to its AIDS drug Norvir -- released the following statement today regarding a US Food and Drug Administration (FDA) "warning letter" to Abbott that demands an end to its misleading price claims about Norvir:

"We are very gratified that federal regulators finally acted to stop the lies, half-truths and distortions by Abbott about the Norvir price increase," said AHF President Michael Weinstein.

"Paper will take anything that is written on it, but the FDA will not," said Weinstein. "We believe this begins a long series of legal sanctions against Abbott for deceptive business practices concerning Norvir."

According to the FDA letter to Abbott, the drug maker's ad about Norvir pricing is "false and misleading." The FDA states that Abbott's published cost chart "raises significant public health and safety concerns because of the violations outlined above and the potential adverse impact these false and misleading messages may have on the HIV community by promoting a sub-therapeutic dose and regimen of Norvir," (source: www.fda.gov -- search word "Norvir"). The letter directs Abbott to respond by June 25 "explaining your plan for discontinuing use of such materials. Because the violations described above are serious, we request, further, that your submission include a plan of action to disseminate truthful, non-misleading, and complete information to the audience(s) that received the violative promotional materials."

In March of the year, AHF filed a false advertising lawsuit against the Chicago-based pharmaceutical over claims that Abbott makes concerning its AIDS drug prices and policies -- charges echoed in the FDA letter. AHF's action in Los Angeles County Superior Court [case# BC312305], under California Business and Professions Code Section 17200, et seq., and other applicable state law, challenges Abbott's claims regarding its Norvir price hike and the impact this price increase will have upon overburdened and under-funded state Medicaid programs such as Medi-Cal. The complaint alleges, "Abbott's assertions that state Medicaid programs would be unaffected by the increase were fraudulent, false and/or misleading and constituted unfair business practices that induced consumers -- including AHF -- to continue buying its products, despite its contemptible conduct."

In February, AHF also filed a federal anti-trust and restraint of trade lawsuit against Abbott concerning its drug prices and policies for Norvir and its subsequent derivative drug, Kaletra. That suit is currently pending.

"The federal anti-trust complaint responds to Abbott's initial, egregious and unprecedented 400% price hike on Norvir back in December," said Weinstein. "The false advertising lawsuit deals with the 'cover up' -- the fact that Abbott is engaging in deceptive business practices, false advertising and fraud by misrepresenting the impact of the increase. The FDA letter also states that Abbott's claims are false and must be suspended immediately."

The price move by Abbott has created a continued uproar and outcry among AIDS advocates nationwide. While Abbott claims that there is no price increase for AIDS Drug Assistance Programs (ADAP) or for state Medicaid plans. Activists and physicians have called for a price rollback, attorneys general of California, Illinois and New York are investigating, and an "un-invitation" is being prepared for Abbott from activists attending next month's International AIDS Conference in Bangkok.