- 2 Attachment 6 The Price Schedule: Category "B", which applied only to Gammacorten, no longer appears. Prices are decreased on: Carme those Liquid, 1 gal- There are basic price increases on Ritalin, Ritonic, Regitine Tablets 100, formerly in the line, are again Entero-Vioform Tablets 20's are no longer available. Orders invoiced by CIBA in April are not subject to Finally, in an effort to improve the functional qualities of our packages, we have redesigned the labels. Your CIBA products are beginning to appear in this new dress, which is designed to increase readability. We hope you like it. CIBA PHARMACEUTICAL COMPANY CUTTER LABORATORIES FOURTH & PARKER STREETS October 25, 1965 Mr. Merritt L. Skinner, R. Ph. Skinner's Pharmacy 222 North Michigan Plymouth, Indiana Dear Mr. Skinner: Thank you for your letter of October 6 and your questionnaire regarding our minimum purchase requirements and quantity discounts used in our distribution of pharmaceutical products. Statement The difficulty we encountered when attempting to answer your Summary Pricing Structure was that our discounts and minimum purchase requirements are of such diverse nature that we found it impossible to apply them to your individual questions and still assure that you would obtain an understandable picture of our marketing structure. The complexity of our quantity discounts and minimum purchase requirements would almost dictate an extended personal face to face discussion for purposes of explaining all exceptions and qualifications in detail. We do appreciate, however, that you have included us in your survey of pharmaceutical manufacturers and hope that we can be of more help on some future occasion. Sincerely yours, Peter 1. Wittkules Peter J. Wittkuhns PJW:jd 1. no Do you have a minimum shipment limit (yes chas 2. 3. What discounts from your catalogue prices do you allow for minimum purchases by each of the following? What additional discounts are given for quantity purchases? a) Individually owned community pharmacies (discounts): (additional discounts/quantity): b) Chain drug stores who maintain warehouse facilities (discount): (additional discounts/quantity): L c) Conventional drug wholesalers (discount): (additional discounts/quantity):_ d) Physicians in individual private practice (discount): 1/4 (additional discounts/quantity): e) Privately owned medical clinics or proprietary hospitals (discount): (additional discounts/quantity): f) Tax supported institutions, such as community, state or federal hospitals Does your company respond to bid offers from federal or state governments, hospitals or other large community purchasers? (yes, no Please explain: Thank you very much for your recent letter concerning the distribution practices employed by pharmaceutical manufacturers. Also, please excuse our delay in replying. I just returned from an extended business trip. Rather than follow point by point the outline in your questionnaire, I would prefer to summarize our policy briefly since we do not find the questionnaire particularly applicable in our case. Geigy pharmaceuticals are distributed to retail pharmacies and hospitals through selected wholesale druggist distributors, thus we do not sell community pharmacies, chain drug stores or chain drug store warehouses on a direct basis. We bill our wholesalers at 20% from our "Wholesale Druggist Distributors' Schedule Suggested Prices to Pharmacists." We do not sell physicians in private practice on a direct basis. We do not sell medical clinics on a direct basis. For competitive reasons, we will sell tax supported institutions and hospitals on a direct basis, with over two-thirds of our hospital sales volume concentrated in federal and state government hospitals as well as other tax supported institutions. We hope that you find this information useful. can help in any other way. Please contact us if we Yours very truly, TEK: B GEIGY PHARMACEUTICALS Division of Geigy Chemical Corporation sumidy Thomas E. Kennedy Manager, Trade Relations |