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Lina M. Khan, chair of the Federal Trade Commission | Federal Trade Commission website

FTC and HHS extend comment deadline for GPO and drug wholesaler RFI

Antitrust

The U.S. Federal Trade Commission (FTC) and the Department of Health and Human Services (HHS) have announced an extension to the public comment period for their joint Request for Information (RFI). The RFI seeks to understand how group purchasing organizations (GPOs) and drug wholesalers contribute to generic drug shortages. The deadline has been extended to May 30, 2024.

According to a joint press release, the agencies are soliciting comments related to the market concentration of large healthcare GPOs and drug wholesalers, as well as their contracting practices. Additionally, they aim to gain insight into how these organizations influence product pricing and availability in the generic pharmaceutical market.

The press release announcing the joint RFI revealed that it was issued on Feb. 14, 2024. The original comment deadline was set for April 15, 2024.

FTC Chair Lina M. Khan commented on the issue in the press release announcing the joint RFI, saying, "For years Americans have faced acute shortages of critical drugs, from chemotherapy to antibiotics, endangering patients." She added that their inquiry is seeking information on what factors are driving these shortages and scrutinizing the practices of opaque drug middlemen.

HHS Secretary Xavier Becerra also expressed his concern in the press release: "When you’re prescribed an important medication by your doctor and you learn the drug is out of stock, your heart sinks." He pointed out that this devastating reality is true for many Americans who need generic drugs for ADHD, cancer, and other conditions.

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