Lilly/PCS Deal "Fails To Protect Consumers"

The US Federal Trade Commission's proposed consent order approving Eli Lilly's acquisition of PCS (Marketletters passim) fails to protect consumers from monopolistic practices by drug companies, according to both leaders of the chain drug store industry and consumer groups.

Even with the stipulations proposed, anti-competitive forces will work against the public welfare through higher prescription prices for consumers, says National Association of Chain Drug Stores president Ron Zeigler, who adds that drug company acquisitions of Pharmacy Benefit Managers are a means to transfer wealth from community retail pharmacies, their customers and other drugmakers to the coffers of vertically integrated companies, to the detriment of the public welfare. The failure of the consent order to deal with pricing to retail pharmacies and a five-year period of duration for the consent (rather than 10) were among concerns raised.