The Federal Trade Commission dismissed the lawsuit it filed in January to block Omnicare's attempt to acquire PharMerica Corp., a rival institutional pharmacy company.
FTC dismisses Omnicare lawsuit
“We're gratified that Omnicare has abandoned its efforts to acquire PharMerica,” FTC Chairman Jon Leibowitz said in the news release. “This deal would have harmed an especially vulnerable group of patients—those in long-term-care facilities—as well as taxpayers, who foot much of the bill under Medicare, by raising the price of drugs for Medicare Part D consumers and others.”
The FTC's complaint had alleged the proposed deal was anticompetitive and could have led to higher drug prices for the 1.6 million Medicare beneficiaries who reside in skilled nursing homes.
Omnicare and PharMerica are the two largest long-term-care pharmacy providers in the U.S.—the combined company would have controlled 57% of the institutional pharmacy market, according to the FTC complaint.
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