IQVIA shares fell on Wednesday after the Federal Trade Commission (FTC) announced that its request for a temporary ban on the health technology company from acquiring Propel Media Inc., a digital advertising company, was granted. The FTC filed for the acquisition ban in July 2023, stating that IQVIA, “the largest provider of healthcare data in the world,” acquiring Propel Media “would give IQVIA a dominant position in the programmatic advertising of healthcare products, particularly prescription drugs, to doctors and other healthcare professionals.”
Impact on Stocks
Shares of IQVIA Holdings Inc. (IQV) fell 3.6% in intraday trading on Wednesday after the FTC announced that its request for a temporary ban on the health technology company from acquiring Propel Media Inc., a digital advertising company, was granted.
Regulatory Concerns
The FTC filed for the acquisition ban in July 2023, stating that IQVIA, “the largest provider of healthcare data in the world,” acquiring Propel Media “would give IQVIA a dominant position in the programmatic advertising of healthcare products, particularly prescription drugs, to doctors and other healthcare professionals.” The regulatory body, which monitors market competition, stated that the merger “would harm competition, raise prices for consumers, and harm patients.”
Impact on Prices and Patients
FTC’s Director of the Bureau of Competition, Henry Liu, stated, “To conclude 2023, the FTC has achieved another important victory temporarily blocking a harmful competitive merger that would increase healthcare prices for consumers,” adding that the agency would continue to fight to permanently prevent this harmful deal through its administrative proceedings.
Scheduled Administrative Hearing
The administrative hearing is set to begin on January 18.
Impact of News on Stock Price
IQVIA shares fell 3.6% to $222.05 per share around 3 PM Eastern Time on Wednesday following the news.
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Federal Trade Commission. “Statement on FTC’s Victory in Securing Temporary Ban on IQVIA’s Acquisition of Propel Media.”
Federal Trade Commission. “FTC Sues to Block IQVIA’s Acquisition of Propel Media to Prevent Increased Concentration in Programmatic Healthcare Advertising.”
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