Whitehall Wins ASDA Injunction

Following UK supermarket ASDA's decision to halve the price of Anadin paracetamol tablets, contrary to the requirements of the UK's Retail Price Maintenance legislation this month (Marketletter June 17 and page 13), Anadin maker Whitehall Laboratories sought an injunction to stop the firm's price-cutting activities, which it has now won.

The question of RPM on medicines is being reviewed by the UK Office of Fair Trading, and ASDA has also gone to the European Commission to have the practice declared unlawful. The Commission has said it is studying the complaint but, according to a Wall Street Journal report, some expect the Commission to use this situation as an excuse to look at the wider picture of over-the-counter drug pricing.

ASDA Launches Own Line Not to be deterred, ASDA (which alleges that RPM is equal to L280 million [$432.3 million] a year extra charge to consumers) has now taken Anadin paracetamol off its shelves altogether, and is selling its own-brand paracetamol at 24 pence/24 tablets compared with the Anadin RPM price of L1.72/24 tablets. ASDA also introduced a range of some 33 own-brand vitamins and health care products at prices averaging around half those of existing branded products.