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FTC drops challenge of Omnicare bid for PharMerica
The Federal Trade Commission has dismissed its complaint to block Omnicare Inc.’s hostile takeover bid for Louisville-based PharMerica Corp. after Omnicare allowed its tender offer for PharMerica shares to expire.
As Business First reported last month, the FTC filed its complaint Jan. 27, 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.”
“We’re gratified that Omnicare has abandoned its efforts to acquire PharMerica,” FTC chairman Jon Leibowitz said in a news release.
“One of the Federal Trade Commission’s core missions is protecting competition in the health care market, which helps keep prices down and the quality of care up. As we said last month when we filed our complaint, 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.”
Covington, Ky.-based Omnicare (NYSE: OCR) generates about $6 billion a year in revenue. It owns and operates 204 long-term-care pharmacies in 44 states.
PharMerica (NYSE: PMC) has annual revenue of about $2 billion. It owns and operates 97 long-term-care pharmacies in 43 states.