The FTC issued an administrative complaint to block Omnicare’s bid for a hostile acquisition of its biggest and only U.S. rival, PharMerica. Omnicare and PharMerica are long-term care pharmacies, which work with institutional providers like skilled nursing facilities. The FTC believes that the merger would allow Omnicare to raise the price of drugs for Medicare Part D because the number of skilled nursing facilities receiving services from Omnicare would “dramatically increas[e],” thereby also increasing Omnicare’s bargaining power to raise the price of drugs to Part D health plans.
The complaint alleges that the acquisition would violate Section 5 of the FTC Act and Section 7 of the Clayton Act. The deal would result in a combined provider serving approximately 57 percent of all licensed SNF beds in the United States.
An administrative law judge will hear the case in June of this year.
Source: FTC Press Release
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI