4 drug makers move to settle in pricing suit

Article Abstract:

Abbott Laboratories, Pharmacia, Rhone-Poulenc Rorer and Upjohn Inc. will settle a class-action price-fixing lawsuit with an agreement to pay $345 million to 40,000 retail pharmacies. The 4 large drug makers had been accused by the pharmacies of conspiring to create a two-tiered pricing system during the early 1990s. The proposed settlement would be included in a larger agreement of about $700 million in which price-fixing claims against 11 pharmaceutical companies were settled two years ago for $351 million.

Comment:

Will settle, with 3 other drug makers, class-action price-fixing lawsuit by paying $345 mil to 40,000 retail pharmacies

Legal issues & crime, Drugs & Pharmaceuticals, Pharmaceutical and Medicine Manufacturing, Company Planning/Goals, Pharmacia Inc., Abbott Laboratories (Abbott Park, Illinois), Rhone-Poulenc Rorer Inc., Upjohn Co., Article

Drug maker to close plants and cut jobs

Article Abstract:

Johnson & Johnson made its cost cutting announcement after the market closed on 12/3/98 denying that the moves are in response to competitors' profits being higher than its own. The 5th largest drug company posted a Q3 earnings gain of 11%, much lower than other pharmaceutical firms. The New Jersey-based company will close 36 plants, 11 in the U.S., and eliminate a net 4,100 jobs over the next 18 months.

Sales, profits & dividends, Facilities & equipment, Human resource management, Finance, Buildings and facilities, Medical equipment, Johnson & Johnson, Consumer goods, JNJ

Investors study drug pipelines for the next blockbuster medicine

Article Abstract:

Analysts predict new arthritis drugs from Monsanto/Pfizer and from Merck & Co. will be the largest sellers in 1999. Big sellers are always drugs that treat ulcers and Johnson & Johnson has Aciphex, American Home Products has Protonix. Investors look for the drugs that will be either a blockbuster, selling over $1 billion in a year, and/or those that will increase stock value by about 16%.

Marketing procedures, New Products/Services, Demographics, Forecasts and trends, Marketing