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PRICING PATTERN OF A TYPICAL BRAND NAME DRUG BEFORE AND AFTER PATENT EXPIRATION

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Range of Market Prices Paid for Single Source Prescription Drugs: Spring 1989

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RANGE OF MARKET PRICES PAID FOR BRAND NAME PRESCRIPTION DRUGS, SPRING 1989 (Ten Products Representing Approximately 8% of Prescriptions for the Elderly)

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APPENDIX J

Examples of letters of refusal from prescription drug manufacturers to a multi-state pharmacy buying group, in response to the buying group's request for pricing bids.

July 20, 1988

BRISTOL-MYERS

U.S. PHARMACEUTICAL AND NUTRITIONAL GROUP

EVANSVILLE, INDIANA 47721-0001 TELEPHONE (812)429-5000

Pace Alliance, Inc.

Retail Pharmacy Purchasing Group 600 Lawrence Avenue, Suite 2A Lawrence KS 66044

Gentlemen:

This will acknowledge receipt of your request dated July 14, 1988. We are pleased to have been selected by Pace Alliance, Inc. and offered an opportunity to bid. I regret, however, that at this time we are unable to comply with your request.

Current Company policy precludes our instituting bid prices with customers other than those within the already established approved guidelines. Pace Alliance, Inc. does not presently fall within those parameters.

The pharmaceutical industry, however, is undergoing a great deal of change and Mead Johnson/Bristol-Myers is no exception. Our customer policy has never been subject to more intensive evaluation than at this time, and if a policy change should result which would impact favorably on your request, you will be notified immediately.

In the interim, if I can ever be of service, please don't hesitate to call. Sincerely,

W/ Walts

M. J. Walts

Supervisor, Pricing

MJW/bb

enc.

BRISTOL LABORATORIES BRISTOL-MYERS ONCOLOGY BRISTOL-MYERS INSTITUTIONAL PRODUCTS MEAD JOHNSON NUTRITIONALS MEAD JOHNSON LABORATORIES MEAD JOHNSON PHARMACEUTICALS

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