Unicare will go to the High Court today to seek an early hearing of its claim to enforce contracts for sale of the pharmacy chain to Gehe, the German group.

By Arthur Beesley

Gehe said last month that it wanted to abandon the €152.4 million acquisition because the Government approved deregulation of the sector after the deal was finalised. But Unicare argues all conditions set out in the contracts for the sale of 29 outlets were satisfied and it initiated proceedings at the start of the month to enforce the deal.

The acquisition would have cleared the way for Gehe to dominate the chemist business in the Republic.

It controls 17 other outlets and the second-biggest pharmaceutical wholesaler in the State, Cahill May Roberts.

At a hearing before Mr Justice O'Sullivan yesterday, Unicare said it would not seek the immediate lodgement by Gehe of €130 million because the German group had indicated it would file its defence by March 23rd. The right to seek such a payment, which represents the up-front cash element of the deal, was reserved.

It is thought that Gehe indicated it wanted to call three health boards and possibly the Minister for Health and Children, Mr Martin, as part of its defence.

The group is understood to say the decision to revoke the 1996 regulations endangers the community pharmacy contracts currently in force at Unicare outlets.

The Government revoked the restrictions after the Attorney General, Mr Michael McDowell, said they were ultra vires.

Gehe has argued that the repeal of restrictions on the number of State pharmacy contracts that can be issued meant the purchase conditions could not be executed in full.

Unicare has rejected that, arguing the contracts provided for the possibility of deregulation in the manner undertaken by Mr Martin last month. The restrictions were lifted days after the Competition Authority sanctioned the deal.