Wholesaler files illegal boycott suit

July 31, 2006

RxUSA Wholesale has filed a $1.8 billion lawsuit against 16 drug manufacturers, five drug wholesalers, and the Healthcare Distribution Management Association. The New York-based distributor charged a conspiracy to boycott secondary wholesalers, eliminate competition, and maintain artificially high prices.

Wholesaler files illegal boycott suit

RxUSA Wholesale has filed a $1.8 billion lawsuit against 16 drug manufacturers, five drug wholesalers, and the Healthcare Distribution Management Association. The New York-based distributor charged a conspiracy to boycott secondary wholesalers, eliminate competition, and maintain artificially high prices. RxUSA reported 2005 sales of $295 million. RxUSA president Robert Drucker charged AmerisourceBergen, Cardinal Health, McKesson, H.D. Smith, and Bellco with trying to kill his company by refusing to sell it any drug products. He also charged HDMA and drugmakers with illegally refusing to do business with RxUSA. McKesson said the suit is without merit and will fight the claims vigorously. Other defendants declined to comment or did not return calls.

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