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FTC sues to block Omnicare takeover of PharMerica

FTC sues to block Omnicare takeover of PharMerica

30 January 2012

Merger and acquisition consultants might be needed by Omnicare, as the US' Federal Trade Commission (FTC) has sued in order to block its proposed bid to purchase PharMerica.

The hostile takeover of this rival pharmacy firm would allow Omnicare to raise the prices it charges to consumers and damage competition in the market, the FTC alleged.

It would cause a dramatic increase in the proportion of skilled nursing facilities that the company provides with long-term care drug services, which could potentially make it an essential business in Medicare Part D prescriptions, the organisation continued.

"If Omnicare is allowed to purchase its biggest and only national competitor, it will diminish competition and raise health care costs - leaving taxpayers and patients to foot the bill," director of the FTC's Bureau of Competition Richard Feinstein declared.

In a statement, Omnicare said it strongly disagrees with the decision of the FTC to try to block this transaction, arguing that the institutional pharmacy sector would remain competitive if the acquisition goes ahead.

Posted by Edel Quinn

Source: FTC press release, January 27th

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