ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, May 4, 1996 TAG: 9605060041
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: CHICAGO
SOURCE: Associated Press
Pharmacists who claimed drug makers were illegally denying them discounts enjoyed by HMOs are near a deal that answers their major complaints.
Lawyers for the 40,000 druggists have reached a revised settlement of their class-action lawsuit against major pharmaceutical manufacturers, people close to the case said Friday.
Unlike an agreement that was rejected by a judge last month, the revised deal would address future pricing practices. But like the earlier deal, the drug companies would pay the pharmacies $408.9 million.
During a series of quiet negotiations over the past several weeks, most of the 15 drug manufacturers who signed the earlier deal had also tentatively agreed ``not to discriminate against pharmacies in pricing,'' said a source who spoke Friday on condition of anonymity.
Although details of the agreement weren't immediately available, it apparently represents a significant new concession by the drug makers.
The settlement talks represent an effort to end two years of litigation over the pharmacies' contention that the manufacturers give unfair price breaks to health maintenance organizations, hospitals and pharmaceutical mail-order houses.
LENGTH: Short : 33 linesby CNB