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Advocacy groups, unions urge FTC to consider blocking $84B AbbVie-Allergan deal

Advocacy groups and unions wrote to the Federal Trade Commission asking the agency to consider blocking AbbVie Inc.'s $84.2 billion acquisition of Allergan PLC, Reuters reported.

Among the consumer groups and unions who wrote the FTC include Public Citizen, the American Federation of Teachers, Consumer Action, the Service Employees International Union and the American Federation of State, County, & Municipal Employees.

AbbVie's acquisition of Allergan will combine the former's top-selling anti-inflammatory drug Humira — which had global sales of about $20 billion in 2018 — and the latter's wrinkle injection Botox, which had sales of almost $3.6 billion in 2018.

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The groups said the acquisition would create the fourth-largest drugmaker during a period when there is much political contention regarding the rising prices of therapies. In the letter, the groups urged the FTC to investigate the deal and take necessary action, including blocking the merger.

The groups also further argued that the merger could result in a more prevalent use of volume-based rebates or incentives to insurers or pharmacy benefit managers — often called middlemen. They also cited Allergan's practice of transferring patents to a Native American tribe to shield it from patent challenges and delay the launch of cheaper copies.

In June, S&P Global Market Intelligence pro forma data showed that the merged entity would hold the No. 5 spot on list of top drugmakers.