AAM Calls Out Threat Of Consolidation Among Purchasers

Letter To Authorities Accuses Buying Groups And PBMs Of Anticompetitive Activities

 
• By Chloe Kent
  
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Drug buying groups and pharmacy benefit managers are leaving generic drug producers unable to compete even when they have viable products due to concentration of buyer power, the Association for Accessible Medicines has highlighted.

Monopsony text over $100 bills
AAM has accused drug buying groups of creating a monopsony on generics • Source: Alamy

The Association for Accessible Medicines has implored the US Federal Trade Commission and the antitrust division of the Department of Justice to address anticompetitive challenges in the generics industry, in a response to the agencies’ 18 January request for information on how they can modernize enforcement of antitrust laws regarding mergers. (Also see "Merger Enforcement: FTC And Justice Department Casting Wide Net In Considering Changes" - Pink Sheet, 19 January, 2022.)

These problems have been caused by monopsony power of drug buying groups purchasing generic drugs, as well as consolidation, integration...

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