Washington, D.C. — The American Economic Liberties Project, along with five other advocacy organizations, sent a letter to the Federal Trade Commission (FTC) today urging the agency to block two major acquisitions proposed by McKesson Corporation and Cardinal Health, which are both seeking to acquire management service organizations (MSOs) that oversee oncology practice networks. As Americans continue to struggle with high drug prices, the letter argues these deals would further entrench the dominance of these pharmaceutical distribution giants, exacerbate drug shortages, and raise costs for cancer patients.

“Big Wholesalers are willing to risk cancer patients’ lives to increase their profits,” said Emma Freer, Senior Policy Analyst for Healthcare at the American Economic Liberties Project. “Allowing McKesson and Cardinal Health to further dominate the oncology market would only serve to benefit their shareholders at the expense of vulnerable patients, who will pay more for their treatment. Competition would also suffer, with upstart wholesalers unable to break into the market and a more embrittled generic drug supply chain, both of which leave patients and providers with fewer options from which to choose. Given the life-and-death stakes of these acquisitions, we urge the FTC to step in and block these harmful deals to protect patients.”

McKesson, which seeks to purchase Florida Cancer Specialists & Research Institute’s MSO for $2.49 billion, and Cardinal Health, which plans to acquire Integrated Oncology Network for $1.1 billion, already command significant market power in drug distribution. The letter highlights how these acquisitions could result in greater vertical consolidation and harm patient outcomes by incentivizing profit-driven decisions at the expense of effective care. The proposed deals involve two dominant wholesalers—McKesson and Cardinal Health—already controlling nearly 65% of the U.S. drug distribution market. By acquiring these MSOs, they would be able to steer providers toward their own financial interests, creating conflicts of interest and reducing the quality of care.

Read the full letter here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.