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Case Study

North Jackson Pharmacy, Inc. et al v. Caremark, Express Scripts, Inc. et al.

April 26, 2010

Independent Pharmacies filed an antitrust case against Pharmacy Benefit Managers (PBMs). The case involved showing that the PBMs created a situation where it was impossible for independent pharmacies (1 to 10 stores) to compete with very large pharmacy chains. Not only did the PBMs allegedly create a pricing mismatch on non-generic drugs between the independents and the large chains, their actions also could be construed as suppressing competition because prices could not vary as they would in a competitive marketplace and because the higher barriers to entry stifled the opening of new small pharmacies.

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