DRUGS: Tranquilizer Tension

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Nevertheless, Roche complied with the order, reducing U.K. prices again to a level even further below what it charges in other European countries or the U.S. The average retail price for 100 two-milligram capsules of Valium in Britain has fallen from around $3 in 1970 to about 75¢—far less than the U.S. price, which runs from $6.50 to more than $11. Roche is now underselling its British competitors—who must also pay royalties to Roche.

The battle is nowhere near over. Roche has filed two appeals from the order: one asks that the order itself be overturned "for want of natural justice"; the other demands compensation from the government for the enforced price cuts if the company wins the main case. Meanwhile, the governments of Australia, New Zealand, South Africa and five European countries are beginning their own investigations of Valium and Librium prices. Because no U.S. Government agency now has the power to regulate drug prices, there are unlikely to be any effects on U.S. prices. Elsewhere, controversy is likely to rage for years, during which Roche executives, government officials and judges in several countries are likely to need stiff doses of tranquilizers.

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