Senators Wyden and Brown Call for FTC Investigation into PBM “Co-Manufacturing” Practices

Senators' Concerns:
Senators Ron Wyden and Sherrod Brown have urged the Federal Trade Commission (FTC) to investigate "co-manufacturing" arrangements by pharmacy benefit managers (PBMs), which they believe could lead to higher drug costs and fewer drug choices for consumers.

Co-Manufacturing Practice:
PBMs are creating wholly-owned subsidiary "manufacturers" to co-manufacture biosimilars, which the senators argue is a veiled attempt to control more parts of the supply chain and increase profits at the expense of consumers.

FTC Lawsuit:
The FTC has already filed a lawsuit challenging unfair methods of competition by PBMs that lead to increased costs for pharmaceutical products.

Legislative Efforts:
The Senate Finance Committee has produced legislation to address PBM practices through the Medicare program, emphasizing the need for reforms to protect consumers and taxpayers from higher prescription drug costs.

Impact on Consumers:
The senators are concerned that these co-manufacturing agreements could result in fewer drug choices and higher drug costs for consumers, highlighting the need for a thorough investigation by the FTC.