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Cardinal Health, Inc.

Cardinal Health, Inc. agreed to resolve charges that it illegally monopolized 25 local markets for the sale and distribution of low-energy radiopharmaceuticals and forced hospitals and clinics to pay inflated prices for these drugs. According to the FTC’s complaint, through separate acquisitions in 2003 and 2004, Cardinal became the largest operator of radiopharmacies in the United States and the sole radiopharmacy operator in 25 metropolitan areas. Between 2003 and 2008, Cardinal employed various tactics to coerce and induce two suppliers to refuse to grant distribution rights for their respective heart perfusion agents products to new competitors in the relevant markets. As a result of these tactics, the complaint alleges that Cardinal obtained de facto exclusive distribution rights to the only HPAs available on the market and prevented numerous potential entrants from gaining access to these radiopharmaceuticals. The stipulated order requires Cardinal to pay $26.8 million of ill-gotten gains and represents the second largest monetary settlement the FTC has obtained in an antitrust case. The money will be deposited into a fund for distribution to injured customers. The order also includes provisions to prevent future violations and restore competition in six markets where Cardinal remains the dominant radiopharmacy.

Type of Action
Federal
Last Updated
FTC Matter/File Number
101 0006

Cooperativa de Farmacias Puertorriqueñas ("Coopharma")

A Puerto Rican cooperative of pharmacy owners, Cooperativa de Farmacias Puertorriqueñas, known as "Coopharma," agreed to settle Federal Trade Commission charges that it harmed competition by negotiating, entering into, and implementing agreements among its member pharmacies to fix prices on which they contract with insurers and pharmacy benefit managers. In settling the charges, Coopharma has agreed not to engage in such conduct in the future.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
101 0079
C-4374

Cardinal Health, Inc, In the Matter of

The Commission required Cardinal Health, Inc. to reconstitute and sell nuclear pharmacies in Las Vegas, Nevada; Albuquerque, New Mexico, and El Paso, Texas under a settlement order resolving the agency’s charges that Cardinal’s purchase of nuclear pharmacies from Biotech reduced competition for low-energy radiopharmaceuticals in the three cities.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
0910136
Docket Number
C-4339

Omnicare, Inc., a corporation, In the Matter of

The Commission issued a complaint to block Omnicare, Inc.'s hostile acquisition of rival long-term care pharmacy provider PharMerica Corporation, alleging that the combination of the two largest U.S. long-term care pharmacies would harm competition and enable Omnicare to raise the price of drugs for Medicare Part D consumers and others. In its complaint, the FTC charges that a deal combining Omnicare and PharMerica would significantly increase Omnicare's already substantial bargaining leverage by dramatically increasing the number of skilled nursing facilities, known as SNFs, that receive long-term care pharmacy services from the company. Due to its substantial market share, the FTC alleges that the combined firm likely would be a "must have" for Medicare Part D prescription drug plans, which are responsible for providing subsidized prescription drug benefit coverage for most SNF residents and other Medicare beneficiaries. On 2/23/2012, the FTC dismissed the complaint in light of Omnicare's decision to abandon the proposed transaction.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
111 0239
Docket Number
9352

Rite Aid Corporation and The Jean Coutu Group (PJC), Inc., In the Matter of

The Commission charged that Rite Aid Corporation’s $3.5 billion acquisition of competitors Brooks and Eckerd Pharmacies from the Canadian drug store operator Jean Coutu Group, Inc. was anticompetitive and required the sale of retail pharmacies located in 23 cities along the East Coast. According to the Commission’s complaint, the merger would have substantially reduced competition in the sale of pharmacy services to customers in those areas, where customers view stores operated by the two companies as their two best options. The consent order requires Rite Aid to divest pharmacies in those cities to buyers preapproved by the Commission. The investigation, which included cooperation from the state attorneys general of Maryland, New Jersey, New York, Pennsylvania, Vermont, Virginia, and Maine, was handled by the agency’s Northeast Regional Office.
Type of Action
Administrative
Last Updated
FTC Matter/File Number
0610257
Docket Number
C-4191

Asociacion de Farmacias Region de Arecibo, Inc., and Ricardo L.Alvarez Class, individually and as an officer of Associacion de Farmacias Region de Arecibo, Inc.

A pharmacy association in northern Puerto Rico and Ricardo Alvarez Class settled charges that they engaged in an illegal boycott in an attempt to obtain higher reimbursement rates for pharmacy goods and services under the government's managed care plan for the indigent. The consent order prohibits the members of the association and Mr. Class from engaging in joint negotiations for prices and from threatening to boycott or refusing to provide pharmacy services.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
9810153
Docket Number
C-3855