FTC Orders Cardinal Health to Sell Nuclear Pharmacies

The Federal Trade Commission has ordered Cardinal Health, Inc. to sell nuclear pharmacies it bought two years ago from Biotech in Las Vegas, NV, Albuquerque, NM, and El Paso, TX. In a proposed settlement order this week, the FTC said the deal reduced competition for low-energy radiopharmaceuticals in the three southwestern cities.

In an e-mail to HealthLeaders, a Dublin, OH-based Cardinal Health representative said: "After our acquisition of Biotech, the Federal Trade Commission (FTC) began an inquiry into the effect that the acquisition may have had on nuclear pharmacy competition in El Paso, Albuquerque and Las Vegas. We cooperated fully with the FTC inquiry and have voluntarily agreed to sell our three former nuclear pharmacies located in El Paso, Albuquerque and Las Vegas."

Before the July 2009 purchase, Cardinal and Biotech both operated nuclear pharmacies that produced, sold, and distributed low-energy radiopharmaceuticals in the three cities. After the acquisition, Cardinal relocated its nuclear pharmacy businesses to the former Biotech nuclear pharmacies and closed its own, FTC said.

Cardinal now holds a low-energy radiopharmaceuticals monopoly in Albuquerque. In El Paso, Cardinal held a monopoly until November 2010, when another nuclear pharmacy opened in the city. Cardinal still holds a large market share in El Paso. In Las Vegas, there were three competitors before the acquisition, and Cardinal and Biotech were the two leading providers. As a result of the acquisition, Cardinal obtained, and has since held, a large market share, FTC said.