Healthy Skepticism Library item: 8889

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Vogt DD, Billups NF.
The merger movement in the American pharmaceutical complex.
J Am Pharm Assoc 1971 Nov; 11:(11):588-91

Abstract:

The continuing trend toward corporate mergers and acquisitions in prescription drug manufacturing, wholesaling and retail distribution may point to some basic changes in the thrust and direction of the American pharmaceutical complex. A number of major drug manufacturers have shifted some of their attention away from pharmaceuticals, while diverse interests have shown a desire to acquire wholesale and community pharmacy outlets. Mergers in the drug industry parallel a much broader movement in American industry, so that developments in the drug industry cannot be considered as an isolated phenomenon. There has been significant merger activity in the wholesale drug industry, particularly in the last decade, and also an acceleration in nondrug company-acquisition of community pharmacy outlets. This curious shift might well affect the future course and image of community pharmacy. Conglomerate mergers have come to be looked upon by the Federal Trade Commission, the Justice Department, the courts and others with increasing suspicion. The question has been raised whether the conglomerate is a desirable part of the free enterprise system. It is challenged upon the suspicion that it tends to diminish or damage competition. Since 1970 there has been an apparent shift of emphasis in antitrust policy. The large conglomerates probably will not be challenged on the basis of ““bigness.’‘ Instead, federal attention seems to be focusing primarily upon rate, price and fee fixing, reciprocal buying agreements, and similar offenses.

Keywords:
Drug Industry* History, 20th Century Legislation, Drug Research United States