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Generic Drug Manufacturer Consolidation is Problematic for Consumers

Consumers Union, Consumer Federation of America, U.S. PIRG, Public Citizen, Consumer Action, Consumer Watchdog, Community Catalyst, and National Center for Health Research, have had a growing concern in recent years as the generic drug industry has become increasingly concentrated. The latest announced merger — the hostile bid by Teva Pharmaceuticals (“Teva”) to acquire Mylan — would combine the two largest generic drug manufacturers in the United States. This letter to the Federal Trade Commission expresses a concern that this merger would: (1) increase prices for generic as well as specialty drugs; (2) exacerbate drug shortages; and (3) reduce the development of new generic drugs. The organizations urge the Federal Trade Commission to investigate this merger thoroughly, and to take action to block it.