SK&F Velocity Agreement
Executive Summary
SK&F reached interim agreement with the Velocity Hospital Group during the week of May 21-25 in relation to Northwestern Drug (Wash.) private antitrust suit v. SK&F and four other mfrs. SK&F will provide normal chargeback allowance on products purchased by Velocity Group plus up to 3% of whsle. price to compensate Velocity Group for extra costs of having to search for alternative supplier. If SK&F prevails in the suit, reimbursement for extra costs will be returned by hospitals to the mfr. Velocity group had claimed it would be put out of business by mfrs. refusal to do business with Northwestern.
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SK&F reached interim agreement with the Velocity Hospital Group
during the week of May 21-25 in relation to Northwestern Drug
(Wash.) private antitrust suit v. SK&F and four other mfrs.
SK&F will provide normal chargeback allowance on products
purchased by Velocity Group plus up to 3% of whsle. price to
compensate Velocity Group for extra costs of having to search for
alternative supplier. If SK&F prevails in the suit,
reimbursement for extra costs will be returned by hospitals to the
mfr. Velocity group had claimed it would be put out of business by
mfrs. refusal to do business with Northwestern. |