CRA testifies on pharmaceutical wholesaler supply contracts

Capsule Production Line

CRA was retained in a dispute between a pharmacy chain and its wholesaler regarding the classification and pricing of drugs in their sales agreement.  CRA’s expert report and testimony demonstrated that the wholesalers reclassification differentially affected the pharmacy chain when compared to historical trends, contemporaneous prices to other pharmacy chains, and the expansion into therapeutic categories that had not previously been affected.  Further, statistical analysis demonstrated that the reclassification was differentially applied to the pharmacy chain, involving more products and more rounds of reclassification that affected business operations as well as total drug spend.  Finally, CRA’s testimony evaluated potential justifications for the reclassification, demonstrating that they were inconsistent with product characteristics (including therapeutic categories, mechanisms of action, and handling or reconstitution requirements), industry custom and practice, or commercial considerations.

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