NCPA opposes First DataBank AWP settlement

June 25, 2007

In federal court papers filed last week, NCPA stated its opposition to the proposed settlement in the average manufacturer price-fixing suit, insisting that it might radically reduce or eliminate the already-thin profit margin for community pharmacies.

In federal court papers filed last week, NCPA stated its opposition to the proposed settlement in the average manufacturer price-fixing suit, insisting that it might radically reduce or eliminate the already-thin profit margin for community pharmacies. The suit against First DataBank and McKesson alleged that the company conspired to inflate the average wholesale price for prescription medications. McKesson denies any wrongdoing and is not part of the proposed settlement. Under the current terms of the settlement, First DataBank has agreed to adjust its reporting of Blue Book AWP by reducing the 5% markup it had calculated into the prices it reported. The company has also agreed to stop reporting AWP in the future. According to NCPA, prescription drug plans have already taken into account the markup in their contracts with pharmacies.

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