FTC Steps Up Probes of Drug Firms’ Mergers

Federal Trade Commission officials are intensifying preparations for a possible challenge to proposed purchases of rival drug wholesalers by Cardinal Health Inc. and McKesson Corp., people familiar with the case said. FTC staff attorneys have obtained statements from opponents of Cardinal’s acquisition of Bergen Brunswig Corp. and McKesson’s purchase of AmeriSource Health Corp., said lawyer Ray Jacobsen, who represents several companies objecting to the combinations. The transactions would combine the nation’s four largest drug wholesalers into two companies that would control about 70% of the wholesale market. Opponents say the transactions would give them enough market share to thwart competition unfairly and raise prices for drug purchasers. Lawyers for the companies argue that competition from other distribution channels will keep the wholesalers from raising prices.