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Drug wholesaling has no practical alternative, FTC says in wholesaler merger federal trial.

This article was originally published in The Tan Sheet

Executive Summary

DRUG WHOLESALING HAS NO PRACTICAL ALTERNATIVE, FTC argues, leaving pharmacies and hospitals with no choice but to accept higher post-merger prices. In opening arguments before a D.C. federal court June 9 seeking to halt the mergers of McKesson/AmeriSource and Cardinal Health/Bergen Brunswig, Federal Trade Commission Bureau of Competition Assistant Director Michael Antalics said independent retail pharmacies and hospitals warehouse less than 1% of their drugs. The fact some large drug chains self-warehouse is irrelevant, he maintained, since they only keep in stock the 2,000 SKUs with the highest turnover and rely on wholesalers for the remaining 18,000 SKUs.





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