In October 2006, First DataBank announced certain changes in our drug pricing reporting practices that may impact your use of First DataBank’s National Drug Data File Plus™ database and other related products. These changes relate to the publishing of the Blue Book Average Wholesale Price (Blue Book AWP) and the proposed settlement of a class action litigation concerning the publication of Blue Book AWP.

On June 7, 2007 the United States District Court, District of Massachusetts granted “preliminary approval” to the terms of the proposed settlement. Final approval of the court is contingent upon the judge's finding that the proposed settlement is fair, reasonable and adequate.
If the terms of settlement are finally approved and ordered by the court, First DataBank will (1) adjust its reporting of Blue Book AWP for certain prescription drugs by reducing the mark-up factor utilized in connection with the calculation of the Blue Book AWP data field to 1.20 for all those NDCs that have a mark-up factor to WAC or Direct Price in excess of 1.20 (such adjustment is estimated to occur during the first quarter of 2008), (2) discontinue publishing the Blue Book AWP data field for all drugs no later than 2 years after the effective date of the final court order, (3) establish a centralized data repository to facilitate reasonable access to discoverable material from First DataBank concerning its drug price reporting practices, and (4) work with major participants in the healthcare industry in court approved discussions intended to facilitate the establishment of a sustainable benchmark for drug reimbursement. First DataBank will continue to publish all other available drug pricing information, including WAC, Direct Price, and suggested wholesale price, as well as our clinical drug information.

First DataBank understands that these changes to the NDDF Plus database may have a significant impact upon our customers. It is our plan to institute these changes in a responsible manner and to continue to provide customers with sufficient notice of any new developments.

First DataBank is committed to providing its customers the best available drug information. We will continue to work with our public and private sector customers in order to gather and publish additional drug pricing data points, as available, and to facilitate the establishment of sustainable drug reimbursement benchmarks.

As always, we will continue to work with our customers to provide the information most relevant to their business needs.

Please visit our website at www.firstdatabank.com/support/rcs/communications/awp/ for more detailed information concerning the proposed settlement and changes to the NDDF Plus database, as it becomes available.