Lilly And US FTC Agree Over PCS Acquisition

14 November 1994

More details are emerging regarding Eli Lilly's agreement with the US Federal Trade Commission regarding its acquisition of McKesson's pharmacy benefit manager PCS Health Systems, which is considered the USA's largest PBM.

Lilly is acquiring PCS for $4 billion but the deal will be governed by limits agreed with the FTC, which has investigated the proposed acquisition on grounds of it enabling Lilly to act in an anticompetitive nature (Marketletter October 31).

A consent agreement has been approved by the FTC, which requires Lilly to ensure that its drugs do not get unwarranted preferential treatment over competitors' products, maintaining an "open formulary." Lilly has also had to agree to the establishment of a "fire wall" which will ensure that the company will not raid sensitive information on its competitors.

This article is accessible to registered users, to continue reading please register for free.  A free trial will give you access to exclusive features, interviews, round-ups and commentary from the sharpest minds in the pharmaceutical and biotechnology space for a week. If you are already a registered user please login. If your trial has come to an end, you can subscribe here.

Login to your account

Become a subscriber

 

£820

Or £77 per month

Subscribe Now
  • Unfettered access to industry-leading news, commentary and analysis in pharma and biotech.
  • Updates from clinical trials, conferences, M&A, licensing, financing, regulation, patents & legal, executive appointments, commercial strategy and financial results.
  • Daily roundup of key events in pharma and biotech.
  • Monthly in-depth briefings on Boardroom appointments and M&A news.
  • Choose from a cost-effective annual package or a flexible monthly subscription
The Pharma Letter is an extremely useful and valuable Life Sciences service that brings together a daily update on performance people and products. It’s part of the key information for keeping me informed

Chairman, Sanofi Aventis UK



Companies featured in this story

More ones to watch >


Today's issue

Company Spotlight