U.S. Senators urge FTC to scrutinize multi-billion dollar pharma mergers

(Reuters) - U.S. presidential hopeful Amy Klobuchar on Tuesday led a letter by U.S.

Reuters September 18, 2019 02:11:15 IST
U.S. Senators urge FTC to scrutinize multi-billion dollar pharma mergers

US Senators urge FTC to scrutinize multibillion dollar pharma mergers

(Reuters) - U.S. presidential hopeful Amy Klobuchar on Tuesday led a letter by U.S. senators that urged the Federal Trade Commission (FTC) to closely scrutinize pharma mergers, raising concerns about the potential harm to customers.

The U.S. healthcare industry has seen a string of multi-billion dollar deals and consolidation is expected to remain a major theme for the rest of the year.

Bristol-Myers Squibb's $74 billion buyout of Celgene Corp and AbbVie Inc's $63 billion bid for troubled smaller rival Allergan Plc were among the largest deals announced this year.

The deals proposed by AbbVie and Bristol-Myers raise significant antitrust issues, the senators wrote, calling on the FTC to "take appropriate action" to protect consumers from mergers that may threaten competition, raise drug prices or reduce patient access to essential medications.

They also raised concerns that the deals may reduce innovation in drug development and give the merged companies increased negotiating leverage to secure positions on drug formularies and greater ability to condition buyers' access to their multi-billion dollar drugs.

"This industry consolidation is occurring against a backdrop of ever rising prescription drug spending... It is more important than ever that the FTC take appropriate action to protect consumers," Klobuchar wrote in the letter signed by senators Bernie Sanders, Kamala Harris, Elizabeth Warren and Cory Booker among others.

(Reporting by Saumya Sibi Joseph in Bengaluru; Editing by Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

China's Ximalaya, Qiniu file for U.S. IPOs
News & Analysis

China's Ximalaya, Qiniu file for U.S. IPOs

(Reuters) -Ximalaya, backed by China's Tencent Holdings, filed for an initial public offering (IPO) in the United States on Friday, cashing in on growing demand as more people tune in to podcasts while staying at home during the pandemic. China's Qiniu Ltd, a cloud-based platform-as-a-service provider backed by Alibaba Group Holding Ltd, also filed paperwork for a U.S. IPO

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources
News & Analysis

Donerail pushes gaming headset maker Turtle Beach to explore a sale - sources

By Greg Roumeliotis (Reuters) - Donerail Group, an investment firm led by former activist hedge fund Starboard Value LP executive Will Wyatt, has amassed a stake in Turtle Beach Corp and is pushing the maker of gaming headsets to explore a sale, people familiar with the matter said on Friday. The move represents a bet that Turtle Beach could attract acquisition interest from peers such as Corsair Gaming Inc and GN Store Nord A/S, as the video game market continues to benefit from people looking for entertainment options at home during the COVID-19 pandemic

Analysis: New meme stocks swing as shorts and retail investors face off again
Business

Analysis: New meme stocks swing as shorts and retail investors face off again

By John McCrank, Saqib Iqbal Ahmed and Lawrence Delevingne NEW YORK (Reuters) - Recent volatility in a handful of so-called meme stocks is putting the spotlight back on the tussle between individual investors and short sellers, months after a wild ride in GameStop captivated Wall Street’s attention. Stocks that have notched big swings this month include laser-manufacturer MicroVision Inc, a favorite on Reddit’s popular WallStreetBets forum, whose shares have risen as much as 170% since April 20 before tumbling in recent days