FOR IMMEDIATE RELEASE:  May 11, 1988


         FTC CHARGES TEXAS ALLERGY CLINIC LED BOYCOTT TO
      PREVENT COMPETITION; DOCTORS AGREE TO SETTLE CHARGES


     The Federal Trade Commission charged the Victoria (Texas)
Allergy & Asthma Clinic and the allergists who practice there
with conspiring with other allergists to use boycotts and
coercion to prevent competition from physicians who are not
allergists.  The two allergists who practice at the clinic agreed
not to engage in such conduct in the future, under a consent
agreement announced today for public comment.
     The FTC's complaint charges Robert E. Harvey, M.D., and
Gullapali K. Rao, M.D., with organizing a conspiracy of
allergists in Texas to boycott the manufacturers of new allergy
testing products.  According to the complaint, the products
require less technical training and experience to adminster and
interpret, and, as a result, allergists began to face the
prospect of substantial competition from physicians who are not
allergists.  The purpose of the boycott was to prevent such
competition by preventing manufacturers from selling the new
products to physicians who are not allergists, the complaint
alleged.
     The two allergists wrote to all or nearly all of the
allergists in the state, encouraging them to boycott Pharmacia
Inc. and MAST Immunosystems Inc., which make the new products,
according to the complaint.  Some of the other allergists joined
in the conspiracy and sought to coerce the firms to discontinue
sales of the new products to anyone but allergists.
     The conspiracy restrained trade unreasonably and hindered
competition in the provision of allergy diagnostic and treatment
services in Texas, the complaint charges.  In addition, it hurt
consumers by limiting their ability to choose among a variety of
providers of allergy diagnosis and treatments and by hindering
the development and use of competitive, convenient, cost-
effective and innovative forms of allergy testing.
     Under the agreement, Drs. Harvey and Rao agreed not to
impede the use of any allergy testing product by any physician,
clinic, hospital, ambulatory care center or other health
facility.
     The investigation was handled by the FTC's San Francisco
Regional Office.
     The consent agreement is scheduled to appear in the Federal
Register today.  It will be subject to public comment for 60
days, until July 11, after which the Commission will decide
whether to make it final.
     Comments should be addressed to the Office of the Secretary,
FTC, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580.


                             (More)
     A consent agreement is for settlement purposes only and does
not constitute admission of a law violation.  When the Commission
issues a consent order on a final basis, it carries the force of
law with respect to future actions.  Each violation of such an
order may result in a civil penalty of up to $10,000.
     Copies of the agreement, the complaint and an analysis of
the agreement are available from the FTC's Public Reference
Branch, Room 130, same address; 202-326-2222; TTY 202-326-2502.

                              # # #


MEDIA CONTACT:     Susan Ticknor, Office of Public Affairs,
                   202-326-2181

STAFF CONTACT:     Janet Grady, San Francisco Regional Office,
                   415-995-5220

(FTC File No. 861 0004)

(Victoria)