Best-Price Rule

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Best-Price Rule

An SEC rule stating that that a tender offer (an offer by a company to buy back some of its own shares) must be available to all holders of that class of share and that the highest price paid must be the price paid to all holders who take advantage of the tender offer. This rule exists to ensure fairness and prevent favoritism in tender offers.
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CMS-authorized supplemental rebates that pharmaceutical companies pay to states are exempt from the Medicaid Best Price rule. This rule requires prescription drug manufacturers to offer the lowest price for a drug they negotiate with any other purchaser (subject to certain exceptions) to all states in the Medicaid program.
Furthermore, various legal and compliance concerns, such as the Medicaid best price rule, so far have slowed adoption of value-based agreements.
Due to the Swiss best price rule that continues to apply during the six months following the end of the additional acceptance period (December 4, 2014) of the public tender offer, Danaher may not pay more than CHF 17.10 per share for any remaining shares of Nobel Biocare purchased in the open market or otherwise.
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