US Pharmacy Antitrust Case Consequences

5 May 1996

As the lawsuits in the US pharmacy antitrust cases are settled (Marketletters passim), independent pharmacy groups will come together to form their own networks, realizing that they can no longer make it alone, according to Robert Johnson of RC Johnson & Associates, and former chairman of PCS.

These networks will then become acquisition targets for drugmakers, wholesalers and health maintenance organizations, he said, and forecast that independent pharmacy groups' share of the market will decline from 40% at present to around 10% by the year 2000.

He said that Federal Judge Charles Korcoras' decision to overturn his previous ruling allowing 15 drugmakers to pay $408.9 million to settle a retailers' class-action suit claiming price discrimination indicates that while there can be differential pricing for market share, if the community of retail and food chain pharmacies can deliver the market share, "you're going to sell to them at the same price you sell to the mail-order people."

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