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Drug Company Mergers Have Consequences


April 6, 2021

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Pharmaceutical consolidation may be coming under closer scrutiny. The Federal Trade Commission (FTC) recently announced it will work with regulators in Canada and the European Union to review its guidelines for evaluating drug company mergers.


In an op-ed published in today’s Washington Post, Robin Feldman, director of the UC Hastings Center for Innovation, draws on her Commonwealth Fund–supported research to show how three waves of mergers since the late 1980s have dramatically consolidated the pharmaceutical industry. The result? Reduced drug innovation, fewer treatment options, and higher drug prices.


The FTC’s recent announcement signals that regulators may be considering a broader view of the repercussions of drug mergers, with an eye toward encouraging competition and innovation.

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