FTC 4, M&A 0! Regulators Win Again, Delay IQVIA's Propel Media Acquisition

This latest preliminary injunction is the commission's fourth successful healthcare sector merger challenge within a one-month span.

IQVIA Holdings' proposed acquisition of rival Propel Media has been temporarily enjoined by a federal judge while the Federal Trade Commission works to permanently block the consolidation of the two healthcare advertising platforms.

During a two-week hearing in November and early December before U.S. District Court Judge Edgardo Ramos, the FTC had sought a preliminary injunction for the deal, arguing that consolidating IQVIA's Lasso Marketing and PMI's DeepIntent -- two of the three largest providers of demand-side advertising platforms -- would give IQVIA an anticompetitive edge for a service that targets ads for pharmaceuticals and other healthcare products to physicians.

Regulators had argued that the merger would incentivize IQVIA – described by the FTC as "the world's largest healthcare data provider" -- to withhold information that would kneecap competition from rivals and discourage newcomers from entering the emerging industry. 

Ramos agreed with regulators and in a December 29 ruling said "the FTC has shown that there is a reasonable probability that the proposed acquisition will substantially impair competition in the relevant market and that the equities weigh in favor of injunctive relief."

The FTC will argue for a permanent injunction at an administrative hearing that begins January 18.

FTC Bureau of Competition Director Henry Liu boasted that the injunction is the fourth successful attempt by the commission within the past month to stifle healthcare sector consolidation, which he said has been shown to increase prices and reduce quality for consumers.

"To close out 2023, the FTC secured another significant victory that temporarily blocks an anticompetitive merger that would raise health care prices for consumers," Lui says. "The federal court's order in IQVIA is also a win for the FTC as it continues to challenge anticompetitive deals involving health care and emerging technology platforms."

The FTC sued to block to deal in mid-July, 2023.

Durham, NC-based IQVIA issued a statement saying it was "disappointed by the court's decision."

"We are reviewing the decision and evaluating our options. IQVIA's acquisition of Propel Media would make it easier for patients and doctors to obtain the healthcare information they need to make better decisions that lead to better health outcomes. We maintain that the FTC's arguments in this case are inconsistent with the reality of the marketplace and unsupported by the law," the statement read.

In December, the FTC also successfully challenged Illumina's acquisition of Grail, John Muir's takeover of San Ramon Regional Medical Center from Tenet Healthcare, and Sanofi's acquisition of Maze Therapeutics' Pompe disease drug.