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      Britain Ends Price-Fixing on Nonprescription DrugsBy: Marjorie Miller This was good news for Britons with the sniffles but a
      headache for the more than 6,000 owners of independent pharmacies, who say
      they will not be able to compete with drugstore and supermarket giants.  "That was our profit," said Dipak Patel, the
      pharmacist at Remedys in West London's Maida Vale neighborhood.
      "That's what kept us going."  Many drugstore customers welcomed lower prices, but others
      worried that this is one more step toward turning a nation of shopkeepers
      into a nation of supermarket shoppers. They feared losing the personalized
      attention of a familiar neighborhood "chemist," who knows their
      medical history and serves as a first-stop health care advisor.  "We rely on these people for many, many things and
      what chance have they got against the supermarkets?" said William
      Millin, the chairman of a real estate company who was shopping at Remedys.
      "You can't talk to anyone at a supermarket. Or, you can talk to them,
      but you won't get an answer."  "It's the way it is in this day and age, the wee guys find it hard to compete. Marks & Spencer sells flowers a lot cheaper than I can buy them. People are going to the supermarket and buying flowers, fish, groceries, beef. Eventually all these shops will be closed," Lowe said
      with a matter-of-fact nod down High Street. "I don't think people
      bother too much whether it's nice or not. It's convenient and cheap."  Down the block from Remedys, one of the country's 1,300
      Boots pharmacies had just dropped the price of a local brand of ibuprofen
      by a third, in a three-for-two pack sale. The result: While Remedys' price
      came to about 19 cents a pill, Boots offered the same product for 13.7
      cents. Patel said he might be able to come down a bit but not 30% on
      nonprescription drugs, which represent half his total sales.  Retailer chains buy medicines in larger quantities and
      therefore obtain better prices from suppliers. Pharmacists said they hoped
      that manufacturers will give independent pharmacists a break to keep them
      from going out of business.  But even the chain pharmacies said they will suffer
      initially. Shares of Boots stock fell by 4.5% after news of the end of
      price-fixing. The company announced that it expected profits to drop
      between $21 million and $28 million, although it believes that the loss
      will eventually be recouped in increased market share.  Pharmacists were critical of stores offering larger
      quantities of drugs for lower prices to boost sales. They noted that one
      supermarket had dropped the price on paracetamol--known in the U.S. as
      acetaminophen--a painkiller that is dangerous when taken in large
      quantities. And where, they said, do you find a pharmacist standing next
      to the ibuprofen in a large supermarket warning that it can be bad for
      asthmatics?  "Many local pharmacies should still find that there
      is a market for their services and that convenience will compensate for
      prices," business columnist Patience Wheatcroft wrote in the Times of
      London. But, she added, legalized price-fixing was "a relic of
      rip-off Britain."  Britain passed the Resale Prices Act in 1964 banning
      price-fixing, but booksellers and pharmacists won exceptions in court on
      the grounds that their businesses needed help or they would go bust.  The booksellers lost theirs in late 1995, but pharmacists
      fought the challenge by the government's Office of Fair Trading,
      supermarkets and a consumer association. In the five years that
      pharmacists have been in litigation, there has been a drop in the number
      of independent bookstores, according to Sidney Davis of the Booksellers
      Assn. But he could not cite any numbers and acknowledged that it was
      impossible to determine whether discounted prices alone were the cause.  "There have been a lot of changes in the market for
      books in the last 10 years. Internet books, the arrival of superstores.
      There has been a slight decline in the number of businesses, but there is
      more square footage dedicated to books and more books sold," Davis
      said.  This week, the judge hearing the case on nonprescription
      drugs warned pharmacists that he did not see a case for continued
      price-fixing, so they gave up the fight Tuesday. On Wednesday, ibuprofen
      was on sale at Sainsbury's supermarket for half the price it was the day
      before. Asda supermarket cut the price of a leading cold remedy by half
      and the price of daily vitamins by 25%.  John D'Arcy, chief executive of the National
      Pharmaceutical Assn., predicted that he will lose a large number of
      independent pharmacists.  
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