FTC launches inquiry into Rx drug middlemen industry

In the face of surging drug prices in the USA, the Federal Trade Commission announced on Tuesday that it will launch an inquiry into the prescription drug middleman industry, requiring the six largest pharmacy benefit managers (PBMs) to provide information and records regarding their business practices.

The agency’s inquiry will scrutinize the impact of vertically integrated pharmacy benefit managers on the access and affordability of prescription drugs. As part of this inquiry, the FTC will send compulsory orders to CVS Caremark; Express Scripts; OptumRx; Humana; Prime Therapeutics; and MedImpact Healthcare Systems.

“Although many people have never heard of pharmacy benefit managers, these powerful middlemen have enormous influence over the US prescription drug system,” said Federal Trade Commission chairperson Lina Khan. “This study will shine a light on these companies’ practices and their impact on pharmacies, payers, doctors, and patients.”