US NACDS Slams Merck-Medco Lawsuit

The US National Association of Chain Drug Stores has stated that the lawsuit filed last month by Merck-Medco Managed Care Inc against four pharmacy retailers (Marketletter March 4) "appears to be without merit, arrogant and arbitrary."

The suit has been filed against Rite Aid Corp, neighborCare Pharmacies Inc, Giant Food Inc and Epic Pharmacy Network Inc, alleging that they engaged in an illegal boycott of the Maryland state employees and retirees' prescription drug benefit program. It seeks treble damages and injunctive relief for antitrust violations under federal and state laws.

The NACDS says it knows of no facts to support any basis for this lawsuit, which it says "appears to be a retaliatory move by Merck-Medco in response to price-fixing allegations leveled at Merck in a separate class action suit filed by over 40,000 community pharmacies against Merck and other drug manufacturers," (Marketletter January 29). It accuses Merck-Medco of attempting to "systematically expand its control over the distribution system and pricing and reimbursement mechanism for prescription drugs," and adds that while it respects Merck & Co's research capabilities and contribution, "the company no longer can hide behind such achievements to justify its attempt to dominate the prescription drug marketplace."