Settlement spells end for AWP

June 18, 2007

The suit against First Databank and McKesson alleged that the companies conspired to inflate AWP for prescription medications.

Pharmacy took another step toward the end of average wholesale pricing when a proposed settlement in a price-fixing suit against First DataBank received preliminary approval from a federal judge. The suit against First Databank and McKesson alleged that the companies conspired to inflate AWP for prescription medications. While First Databank admitted no wrong doing, it has agreed to settle the case. McKesson denies the accusations and is still fighting in court. Under terms of the settlement, First DataBank will 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 discontinue publishing the Blue Book AWP within two years. First DataBank has also agreed to help find a different benchmark measurement for drug pricing.

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