FTC, HHS Seek Public Comment on Generic Drug Shortages and Competition Amongst Powerful Middlemen

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FTC, HHS Seek Public Comment on Generic Drug Shortages and Competition Amongst Powerful Middlemen
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Joint request seeks information on impact of group purchasing organizations and drug wholesalers on access to generic pharmaceuticals

Today the Federal Trade Commission and the U.S. Department of Health and Human Services jointly issued a Request for Information to understand how the practices of two types of pharmaceutical drug middlemen groups—group purchasing organizations and drug wholesalers—may be contributing to generic drug shortages., the FTC and HHS are seeking public comment regarding market concentration among large health care GPOs and drug wholesalers, as well as information detailing their contracting practices.

GPOs serve as intermediaries in the pharmaceutical industry by negotiating deals for generic drugs and other medical supplies between health care providers—including hospitals, physicians, nursing homes, and home health agencies—and manufacturers, distributors, and others who sell to health care providers. Drug wholesalers are another type of intermediary group which purchase drugs directly from manufacturers and deliver them to health care providers.

Whether and to what extent manufacturers, GPOs, and drug wholesalers are complying with their legal obligations under Section 3 of the Clayton Act and the Robinson-Patman Act.

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