Consumer Groups Submit Comments Opposing Merger of CVS and Aetna
Yesterday several consumer groups, concerned about the merger of CVS and Aetna and its harmful effects on competition and consumers, submitted comments on the merger and the proposed final judgment to the Department of Justice. In these comments, they argue that CVS's acquisition of Aetna is harmful to consumer choice and ordinary Americans and that the Department of Justice's proposed final judgment is woefully inadequate for protecting consumers. They urged the Court respon
The FTC's Settlement With Mallinckrodt And What It Says About Our Drug Pricing System
Almost two years ago in January 2017, the Federal Trade Commission (FTC) fined the drug company Mallinckrodt $100 million for anticompetitive practices, and required the company to allow its competitor to produce a similar medication. This settlement came after widespread outrage after Mallinckrodt purchased a drug called Acthar, which is used to treat infantile spasms and multiple sclerosis, and raised the price by 85,000%, while thwarting attempts by competitors to introduc
Merger of CVS and Aetna Runs Into Hurdles, Hearing Set For December 18th
The proposed merger of CVS and Aetna has encountered additional obstacles. Judge Richard Leon has raised concerns about whether the merger will harm consumers and scheduled a hearing for December 18th. The two companies had declared their merger complete, but the judge disagreed, and told them that by December 14th, they must provide him with reasons why he should approve the merger. CVS's $69 billion acquisition of Aetna was approved by the Department of Justice, but only on
Consumer Groups Urge FDA to Ensure Citizen Petitions Are Not Abused to Block Drug Access
Two months ago, the Food and Drug Administration (FDA) announced a comment period on a new draft guidance intended to stop drug companies from abusing the citizen petition process to block access to new affordable generic drugs. This week, several consumer groups submitted comments supporting the draft guidance and urging the FDA to fight sham citizen petitions and promote drug access. The comments were submitted by Mr. David Balto on behalf of Consumer Action, Consumer Repor
How Rebate Walls Lead to Higher Drug Prices
Lowering drug prices will be a long term project requiring action and commitments from legislators, antitrust regulators, and other officials. The Federal Trade Commission (FTC) could play an important role in several areas by opening antitrust investigations about the questionable practices of drug companies, and bringing enforcement actions. In a new oped, David Balto writes about questionable practices known as 'rebate walls', how they contribute to higher drug prices, an
