ST. LOUIS — A pharmacy services administrative organization (PSAO) is suing Express Scripts Inc. alleging it is suppressing competition in pharmacy markets.
Wholesale Alliance is doing business as Pharmacy First. It filed the lawsuit against Express Scripts on June 21 in the U.S. District Court for the Eastern District of Missouri-Eastern Division.
Pharmacy First calls Express Scripts' actions unlawful and anti-competitive, as it has only entered into arrangements with four of 22 PSAOs nationwide, which essentially forces independent pharmacies to use one of the four PSAOs.
Express Scripts' actions have denied pharmacies an open and competitive market, according to the suit.
"Express Scripts' anti-competitive conduct has also harmed, and will continue to harm, Pharmacy First by causing pharmacies who have already affiliated with it, or would affiliate with it prospectively, to instead affiliate with one of Express Scripts' four selected PSAOs or otherwise take their business elsewhere," the complaint states.
Pharmacy First noted in the complaint that there were approximately 22,000 independent pharmacies nationwide that represent 36 percent of the pharmacy market.
The 22 PSAOs across the United States serve approximately 18,000 to 19,000 independent pharmacies, according to the suit.
Pharmacy First and Express Scripts had a services agreement that began in 2013; however, beginning in February, Express Scripts began interfering with Pharmacy First's rights under the agreement, the suit alleges.
Express Scripts decided to contract with only four PSAOs and stopped working with Pharmacy First. It had sent Pharmacy First a letter in March terminating the agreement without cause effective at the end of June.
Pharmacy First claims Express Scripts violated the Sherman Act and breached its covenant of good faith and fair dealing.
Pharmacy First is seeking an order enjoining Express Scripts from its wrongful actions and damages.