US Restrictions On Lilly/PCS?

A US Federal Trade Commission request has been made for more information about Eli Lilly's proposed purchase of pharmacy benefit manager PCS Health Systems. The agency has indicated that it may insist on strict and unprecedented conditions before approving the acquisition by Lilly.

There are concerns about the possibility of of the deal having anticompetitive effects, which the agency is pursuing under its antitrust powers.

The FTC action does not seem to be bothering many drug analysts. David Saks of Guntal & Co says he sees this as only a caution "rather than a stop sign," while Carl Seiden of Sanford C Bernstein noted that stopping the deal would put Lilly at a competitive disadvantage, which the FTC can't do. "Since massive change in the industry is going on, and it is impossible to tell all the ramifications of this deal, the agency is taking its time," he said.