top of page

CVS Health’s Drug Pricing Now Under FTC Scrutiny

Pharmacy chain inserts new language subtly disclosing new legal trouble.

August 3, 2022

CVS Health’s (CVS) pharmacy benefit management (PBM) unit is under investigation by law enforcement and regulatory agencies regarding its drug pricing and the secretive rebate arrangements it has with drug manufacturers. The company is now under additional federal scrutiny from the nation’s top civil antitrust watchdog.

Previously, CVS has acknowledged it has received subpoenas, civil investigative demands (CIDs) and other requests for documents and information from Attorneys General in several states and the District of Columbia regarding its PBM practices.

In its latest quarterly filing, CVS added the Federal Trade Commission (FTC) to the aforementioned list of agencies probing the way it runs PBM segment. It’s not clear if the FTC’s probe ends with CVS Health’s PBM practices.

In another section of the filing listing the authorities investigating or auditing the company in legal matters including but not limited to its PBM practices, CVS again inserted new language revealing the FTC is now probing the company alongside others like the U.S. Drug Enforcement Administration (DEA).

Last year, DuDil first warned investors of allegations CVS Health has been illegally inflating the price of prescription drugs.


Become a DuDil Insider

Get our due diligence alerts before they're released publicly & be first to know.

bottom of page