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SUPERMARKET DRUG PRICE DISCRIMINATION SUIT AGAINST 16 MANUFACTURERS

Executive Summary

SUPERMARKET DRUG PRICE DISCRIMINATION SUIT AGAINST 16 MANUFACTURERS and Medco charges that volume is not taken into consideration by manufacturers in setting prices to different classes of trade. The four plaintiffs -- Kroger, Albertson's, Safeway and Vons -- allege that they purchase larger volumes of certain prescription drugs from manufacturers but are charged more than "favored purchasers," such as mall order and HMO-affiliated pharmacies. Kroger estimates that 4% of its overall retail sales are from its pharmacy operations, putting pharmacy revenues at roughly $900 mil. for the year.

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