US Pharmacy Price-Fixing: Judge Approves Settlement

The amended settlement agreed by 13 drugmakers in the US pharmacy pricing class-action antitrust lawsuit (Marketletters passim) has been approved by Chicago Federal Court Judge Charles Kocoras.

While "the language propounded by the amendment does not mirror precisely the language articulated by the court," he says, "we believe the amendment sufficiently addresses our state concerns and in fact represents a firm commitment on the part of the settling defendants." Settling were American Home Products, Bristol-Myers Squibb, Glaxo Wellcome, Lilly, Knoll, Merck & Co, Pfizer, Schering-Plough, SmithKline Beecham, Warner-Lambert and Zeneca.

The spirit of the amendment commands that "discounts shall no longer be refused to retail pharmacists on the basis of retailer status, and that retail pharmacies and buying groups who are able to demonstrate an ability to affect market share shall be entitled to share in the same type of discounts enjoyed by managed care," said the judge. He also noted that the amended settlement has produced only 162 critical comments from the pharmacists, compared with over 3,000 protests against the original settlement.