Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By



Executive Summary

Searle initiated a single pricing policy for hospitals and whslrs. in early October for retail trade packages as an anti-diversion move. The company said in an Oct. 21 press release that bidding will continue for products packaged or labeled exclusively for hospital use, such as unit dose and injectables. "We are making the move in response to concerns expressed by our pharmacy customers over the effects of multi-level pricing," Searle explained. "This is an attempt to remove incentives for diversion of Searle products." One of the avenues for drug diversion is through nonprofit hospitals, which have been able to resell discounted Rx drugs back into distribution channels. At its first hearing on drug diversion and counterfeiting held in July, the House Commerce/Oversight Subcmte. stated that "an entire industry has sprung up whose sole purpose appears to be to solicit nonprofit hospitals to purchase excess pharmaceuticals using their special discount, which products are then immediately resold to the broker or whslr. for ultimate resale to a retailer" ("The Pink Sheet" July 15, p. 6). Searle's one-price program for retail packages comes close to the pricing changes sought by the Natl. Assn. of Retail Druggists (NARD). That group has been active in support of the House hearings on diversion and has been pushing for a legislated change which would prevent price differentials between the retail trade and institutions (except for charitable institutions). At the recent NARD annual meeting in New York City, NARD Exec VP Charles West told an Oct. 21 press conference that the assn. was "very confident" of success in reforming the pricing system. Asked when the changes would come, West replied: "This year." He noted that it might not be a "total solution . . . but we will make so much headway this year that we could certainly declare victory."

You may also be interested in...

Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth




Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts