I don't understand why this purchase was not turned down for on grounds of anti-trust. There will be less competition for lowering drug costs. How is this a good thing for American health care?
There are four large pharmacy chains in NYC and now Walgreens owns three of the four. Not long ago Walgreens purchased Duane Reade. Now the competition is limited to Walgreens and CVS.
I don't see the anti-trust thing. In addition to the "drug store" chains, there are pharmacies embedded in (many|most|all?) Wal*Mart stores, Target stores, Publix stores, Kroger stores, Harris Teeter stores, etc. I would guess there are other grocery chains that have pharmacies as well. Plus there are still independent pharmacies. I don't know what the situation is like in NYC specifically, but just to share an anecdote from where I live - there are two "indy" pharmacies within walking distance of my office on Main Street in Durham, NC.
This is just an announcement that the two companies plan to merge. Following this announcement, the government will analyze the deal and decide whether or not to oppose it.
> I don't understand why this purchase was not turned down for on grounds of anti-trust.
For one thing, the deal was just announced. This happens before anti-trust scrutiny begins. Various sources have indicated that the deal is likely to be closely scrutinized by the FTC (though some predict it will be approved as-is). [0]
> I don't understand why this purchase was not turned down for on grounds of anti-trust. There will be less competition for lowering drug costs. How is this a good thing for American health care?
Numerous other pharmacy chains exist. Many major stores have pharmacy departments. This merger would hardly creates a monopoly or anywhere near one, nor will it reduce competition to a degree that one company will be in an abusive position.
Hearing rumbles that this deal isn't going to go through. But I will say from experience that when companies announce such deals they have already done their homework and generally feel pretty good about anti-trust issues. We'll be interesting to watch. Either way - Wall Street is selling Walgreen's on the news.
If you want to get pissed about a lack of competition in the pharmacy market then look at the two large PBMs. They set the prices of drugs that every drug store pays. If they choose to raise prices and the insurers don't move in lockstep then you're stuck filling prescriptions at a loss.
A bigger Walgreens affords it more bargaining power against drugs/pharma companies, which could lead to them cutting drugs' cost to consumers. As it is now, there are times the Walgreens (and independents and the rest) have to swallow the bitter pill of drugs price adjustments because the reimbursement schedule does not adjust as drugs prices adjust. A drug they pay $10 for today might be $60 next week and if they want to keep their patients coming, which they do, most of the time they take the loss on those drugs --till the price schedule from the feds is readjusted.
You do realize that there are so many sources of low cost drugs that the one thing holding back many is that no one has really put effort in to gathering all that data and making it easily accessible to the public.
most grocery chains, warehouse chains, and big box retailers, have pharmacies, all with heavily discounted drugs and some are even free. Since many have insurance they don't feel the effect so the drug stores stay in business as some don't like the idea of going to the grocery store for their medicine.
I agree that less competition is bad, but isn't the primary reason for expensive drugs is because of the Pharmaceutical companies who discover them, not the pharmacies that distribute them? Regardless, this change certainly won't help.
That would be because antitrust and antimonopoly policies are all but forgotten and discarded. I don't have a paper to share, but my off the cuff analysis is that markets and industries acroos the board are in merger and aquisition mode, with a side of sellout and bankruptcy. Media is one of the best examples of this in my opinion.
Also, who would be responsible for such antitrust moves? DOJ? The legislative? Both are corrupt to the core, and don't think I'm not counting SCOTUS in that.
You could say so about so many mergers. The simple fact is that since the days of bush the son, there's much less anti-trust enforcement in the u.s. ,and you see it in many areas.
I don't know much about Wallgreens, but didn't like how they've been opening stores across the street from RA here in Los Angeles, instead of the next deserving block.
Also hope they don't get rid of the Thrifty (drug store) ice-cream, it is one of the only places to get a decent scoop at a low price for families. Not to mention lots of good memories.
The Thrifty ice cream was sadly overpriced these days at the RA I last went to. I could have bought a half gallon of ice cream at the grocery store right next door for the same price as two scoops at RA.
I did always love Rite Aid though Walgreens is good as well. CVS is the only one of that type of store that I routinely avoid. I wonder if Rite Aid and Walgreens will follow suit in not selling cigarettes anymore.
Yes CVS sucks. I can't put my finger on why exactly. It just feels cheap. Like the paper bags they give me (which I have to pay for directly in California) are so thin as to be nearly unusable. They're like barely thicker than tissue paper making them not reusable.
I don't know if that's the only issue that set me off on CVS.
Walgreen annoyed me because they started replacing everything with their "NICE" brand which is about the lowest quality possible. That displaced brands of various things that were higher quality. I can't remember what I bought. Might have been cotton swabs (ie q-tips) because they stopped carrying q-tips and they were basically unusable. Plastic sticks that broke. Sticks that poked through the cotton.
I can only hope enough people care to either vote with their wallet or complain (I sent them a letter in the hopes to have some influence).
As a former smoker, current nicotine gum addict, I'm surprised CVS hasn't advertised its massive price difference on it and nicotine patches in addition to their not selling tobacco. I can buy (generic CVS branded) nicotine gum for half of what Walgreens branded generic goes for, in basically the same form factor, same strength, etc.
I grew up in Chicago (where Walgreens is from) and I routinely avoid CVS and shop at Walgreens if I have the choice. My girlfriend is from NY so she never saw Walgreens until her 20s so she avoids Walgreens and goes to CVS.
[+] [-] davidf18|10 years ago|reply
There are four large pharmacy chains in NYC and now Walgreens owns three of the four. Not long ago Walgreens purchased Duane Reade. Now the competition is limited to Walgreens and CVS.
[+] [-] mindcrime|10 years ago|reply
[+] [-] cjensen|10 years ago|reply
[+] [-] muzakthings|10 years ago|reply
Try pharmaceuticals, insurance companies, the FDA, and trade policies if you want to find the culprits or actual structure behind the prices of drugs.
[+] [-] itslennysfault|10 years ago|reply
btw... I'm not arguing with you. It sucks.
[+] [-] dragonwriter|10 years ago|reply
For one thing, the deal was just announced. This happens before anti-trust scrutiny begins. Various sources have indicated that the deal is likely to be closely scrutinized by the FTC (though some predict it will be approved as-is). [0]
[0] http://www.reuters.com/article/2015/10/27/us-rite-aid-m-a-wa...
[+] [-] JoshTriplett|10 years ago|reply
Numerous other pharmacy chains exist. Many major stores have pharmacy departments. This merger would hardly creates a monopoly or anywhere near one, nor will it reduce competition to a degree that one company will be in an abusive position.
[+] [-] skhatri11|10 years ago|reply
[+] [-] mason55|10 years ago|reply
Oh, and one of them is owned by CVS.
http://www.npr.org/sections/health-shots/2015/10/22/45060056...
[+] [-] mc32|10 years ago|reply
[+] [-] Shivetya|10 years ago|reply
most grocery chains, warehouse chains, and big box retailers, have pharmacies, all with heavily discounted drugs and some are even free. Since many have insurance they don't feel the effect so the drug stores stay in business as some don't like the idea of going to the grocery store for their medicine.
[+] [-] chejazi|10 years ago|reply
[+] [-] bane|10 years ago|reply
The problem with drug stores is they literally don't need to exist in most places anymore because there's so much overlapping competition.
[+] [-] arca_vorago|10 years ago|reply
Also, who would be responsible for such antitrust moves? DOJ? The legislative? Both are corrupt to the core, and don't think I'm not counting SCOTUS in that.
[+] [-] petra|10 years ago|reply
[+] [-] sitkack|10 years ago|reply
There is always more monopoly where that came from.
[+] [-] unknown|10 years ago|reply
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[+] [-] meritt|10 years ago|reply
[+] [-] CyberDildonics|10 years ago|reply
[+] [-] hlmencken|10 years ago|reply
[+] [-] unknown|10 years ago|reply
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[+] [-] digisign|10 years ago|reply
Also hope they don't get rid of the Thrifty (drug store) ice-cream, it is one of the only places to get a decent scoop at a low price for families. Not to mention lots of good memories.
[+] [-] djloche|10 years ago|reply
[+] [-] n0us|10 years ago|reply
[+] [-] greggman|10 years ago|reply
I don't know if that's the only issue that set me off on CVS.
Walgreen annoyed me because they started replacing everything with their "NICE" brand which is about the lowest quality possible. That displaced brands of various things that were higher quality. I can't remember what I bought. Might have been cotton swabs (ie q-tips) because they stopped carrying q-tips and they were basically unusable. Plastic sticks that broke. Sticks that poked through the cotton.
I can only hope enough people care to either vote with their wallet or complain (I sent them a letter in the hopes to have some influence).
[+] [-] bbarn|10 years ago|reply
[+] [-] itslennysfault|10 years ago|reply
I grew up in Chicago (where Walgreens is from) and I routinely avoid CVS and shop at Walgreens if I have the choice. My girlfriend is from NY so she never saw Walgreens until her 20s so she avoids Walgreens and goes to CVS.
[+] [-] stephengillie|10 years ago|reply
[+] [-] _RPM|10 years ago|reply