CONTACT:

ME Representative Sharon Treat
207-242-8558 | streat@reducedrugprices.org

DC Councilmember David Catania
202-724-7772 | dcatania@dccouncil.us

Hallowell, ME -- The National Legislative Association on Prescription Drug Prices (NLARx) today called for the Federal Trade Commission to investigate CVS Caremark for consumer protection violations.

In a letter to FTC Commissioner Jon Leibowitz, NLARx Executive Director Sharon Treat today asked the Commission to investigate the merged pharmaceutical industry giant CVS Caremark, the country's largest drug retailer and largest PBM.

NLARx believes that the 2007 merger between the two companies created a heightened opportunity for anticompetitive and exclusionary conduct that harms consumers by increasing the price of drugs and limiting patients' access to pharmaceutical care.  Citing the lack of a substantial investigation at the time of the merger, ongoing misconduct in the PBM industry and evidence that the merged company is currently engaging in harmful and deceptive conduct, NLARx asked that the Commission exercise its power to review consummated mergers and open an investigation into CVS's acquisition of Caremark.

Treat urged the FTC to look more closely at the health care giant.  "CVS's acquisition of Caremark, which placed the largest PBM in the hands of the largest pharmacy chain, has created a significant likelihood of harm to consumers," Treat said, "Opportunities for anticompetitive, fraudulent and exclusionary conduct have increased substantially and merit FTC review."

Letter to FTC Commissioner Jon Leibowitz, PDF (63 KB PDF)