Senators Wyden and Brown Urge FTC to Expand Investigation into PBMs’ Anti-Competitive Practices

FTC Lawsuit:
The Federal Trade Commission (FTC) has filed a lawsuit against the three largest pharmacy benefit managers (PBMs)—Caremark Rx, Express Scripts (ESI), and OptumRx—alleging they engaged in anticompetitive and unfair rebating practices that artificially inflated insulin drug prices.

Co-Manufacturing Concerns:
Senators Ron Wyden and Sherrod Brown have urged the FTC to investigate new tactics by PBMs, specifically "co-manufacturing" agreements, which they believe are veiled attempts to control additional parts of the supply chain, leading to fewer drug choices and higher costs for consumers.

Congressional Scrutiny:
PBMs are facing increased scrutiny from Congress, with recent hearings and reports highlighting their role in inflating drug costs and reducing consumer choice.

Industry Impact:
The FTC's actions and potential policy changes could have broad implications for the pharmaceutical industry, with experts suggesting that reforms could lead to meaningful changes in how drug prices are negotiated and set.

Bipartisan Support:
There is bipartisan support for PBM reforms, with legislation aimed at addressing PBM practices having been voted out of the Finance Committee last year.

FTC's Ongoing Efforts:
The FTC has been investigating PBM practices for over two years and has released an interim report outlining how PBMs profit at the expense of American patients and independent pharmacists.