DORGAN SAYS FTC INVESTIGATION OF CVS/CAREMARK MERGER IS NECESSARY TO ENSURE FAIR COMPETITION
Friday, November 6, 2009
CONTACT: Justin Kitsch
or Brenden Timpe
PHONE: 202-224-2551
(WASHINGTON, D.C.) – U.S. Senator Byron Dorgan (D-N.D.) today welcomed the news that the Federal Trade Commission is investigating the 2007 merger of CVS and Caremark, saying it is necessary to ensure fair competition in the prescription drug market.
In July, Senator Dorgan, along with Senators Russ Feingold (D-WI) and Amy Klobuchar (D-MN), sent a letter to the FTC stating that the combination of Caremark and CVS “created a heightened opportunity for anticompetitive conduct in the prescription drug market.” They requested that the FTC investigate the merger because it was hurting Main Street pharmacies.
The merger of CVS and Caremark created the largest U.S. drugstore chain and pharmacy benefits manager. Senator Dorgan requested the investigation because of customer and local pharmacists’ complaints that the company is using its market power to force consumers to use only CVS stores and Caremark mail-order services – and abandon the local pharmacies they know and trust – or else pay higher prices. The merger also raises questions about privacy violations.
“I’m concerned this merger has created an unfair climate for customers, who now find themselves being driven towards filling their prescriptions at CVS or Caremark’s mail-order pharmacy service. This hurts Main Street pharmacies and patients who depend on advice from their local pharmacists,” said Dorgan. “In my opinion, this violates antitrust laws. I commend the FTC for investigating this merger and hope to find a solution that will benefit customers and local pharmacies.”
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