Minnesota Lawmaker Plans To Introduce Bill That Would Exempt Prescription Drugs From State Predatory-Pricing Law
- Friday, January 12, 2007, 16:58
- Pharma Industry, Public Health
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Minnesota Rep. Joe Atkins (D) this week plans to introduce legislation that would exempt all generic and brand-name prescription drugs from the state’s predatory-pricing law, which prohibits the sale of items below cost, the Minneapolis Star-Tribune reports. The bill would allow pharmacies to price about 50 generic drugs at $4 each, as long as two competitors offer prices within 10% of the lowest price charged. Target and Wal-Mart stores last year announced the sale of generic drugs for $4, but Minnesota’s 1937 predatory-pricing law kept some drugs from being sold below cost (Wolfe, Minneapolis Star Tribune, 1/6). The Minnesota Pharmacists Association said the bill — which would exempt drugs from a law originally intended to keep businesses from driving out their competitors — would harm small-town drug stores that cannot compete with larger retailers (AP/St. Paul Pioneer Press, 1/6). Liz Carpenter, the association’s vice president of public affairs, said, “We’re already losing 10 to 12 pharmacies a year, and the state got a new study that says the average cost of dispensing a prescription is $9.50.” She added, “Selling a drug for $4 means we’re already losing $5.59, plus our cost of buying the drug.” Atkins said he is sponsoring the bill “because we need to do something to start delivering reasonably priced drugs to Minnesota consumers.” He said he will meet with pharmacists next week to discuss their concerns, adding that there “may be some other things the independent pharmacists can do to help them lower their costs — for instance, sell 90 days’ worth of drugs instead of 30″ (Minneapolis Star-Tribune, 1/6).
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