[Federal Register Volume 61, Number 119 (Wednesday, June 19, 1996)]
[Notices]
[Pages 31117-31118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-15486]



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FEDERAL TRADE COMMISSION
[Docket No. C-3594]


Eli Lilly and Company, Inc.,; Prohibited Trade Practices, and 
Affirmative Corrective Actions

AGENCY: Federal Trade Commission.

ACTION: Consent order.

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SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair or deceptive acts or practices and unfair methods of 
competition, this consent order requires, among other things, and 
Indiana producer of pharmaceutical products to: ensure that the 
acquired company, PCS Health Systems (PCS), maintains an open 
formulary; appoint an independent Pharmacy and Therapeutics (P&T) 
Committee of health care professionals to objectively evaluate drugs 
for

[[Page 31118]]

inclusion in the PCS open formulary; and, ensure that PCS accepts all 
discounts, rebates or other concessions offered by Eli Lilly's 
competitors for drugs that are accepted for listing on the open 
formulary, and to accurately reflect such discounts in ranking the 
drugs on the formulary. Pursuant to the modification of the proposed 
consent agreement, Eli Lilly would only need to obtain prior approval 
for an exclusive distribution agreement with McKesson Corporation. In 
addition, the consent order prohibits PCS and Eli Lilly from sharing 
proprietary or other non-public information, such as price data, 
obtained from Eli Lilly competitors whose drugs may be placed on a PCS 
formulary.

DATES: Complaint and Order issued July 28, 1995.\1\

    \1\ Copies of the Complaint, the Decision and Order, and 
statements from the Commission and Commissioner Azcuenaga are 
available from the Commission's Public Reference Branch, H-130, 6th 
Street & Pennsylvania Avenue, N.W., Washington, D.C. 20580.
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FOR FURTHER INFORMATION CONTACT:
Michael McNeely, FTC/S-3231, Washington, D.C. 20580 (202) 326-2904.

SUPPLEMENTARY INFORMATION: On Monday, November 28, 1994, there was 
published in the Federal Register, 59 FR 60815, a proposed consent 
agreement with analysis In the Matter of Eli Lilly and Company, Inc., 
for the purpose of soliciting public comment. Interested parties were 
given sixty (60) days in which to submit comments, suggestions or 
objections regarding the proposed form of the order.
    Comments were filed and considered by the Commission. The 
Commission has ordered the issuance of the complaint in the form 
contemplated by the agreement, made its jurisdictional findings and 
entered an order to cease and desist, as modified, in disposition of 
this proceeding.

(Sec. 6, 38 Stat. 721; 15 U.S.C. 46. Interpret or apply sec. 5, 38 
Stat. 719, as amended; sec. 7, 38 Stat. 731, as amended; 15 U.S.C. 
45, 18)
Donald S. Clark,
Secretary.
[FR Doc. 96-15486 Filed 6-18-96; 8:45 am]
BILLING CODE 6750-01-M