In a pivotal legal development, a U.S. judge has upheld the Federal Trade Commission's (FTC) decision to thwart IQVIA's ongoing efforts to acquire Propel Media, the owner of pharmaceutical digital advertising specialist DeepIntent.
The protracted saga originated in 2022, when IQVIA, a leading biopharma data provider, sought to acquire Propel, specifically for its DeepIntent business. However, in the previous year, the FTC intervened, imposing a block on the deal. The FTC's rationale centered on its apprehension that the acquisition would confer upon IQVIA a dominant position in healthcare product advertising, particularly prescription drugs, directed at healthcare professionals, including doctors.
The FTC claimed in its official complaint that the merger would give IQVIA a "heightened motivation" to withhold crucial information, stifling competition between current businesses and potential new entrants. The complaint further asserted that the merger would result in a decline in market competitiveness.
IQVIA, a major repository of pharmaceutical sales, prescription, and patient record data globally, faced allegations of potentially monopolizing the pharmaceutical advertising market due to its extensive reach.
As the case advanced into 2024, District Judge Edgar Ramos ruled in favor of the FTC, asserting that the "FTC has satisfied its burden of demonstrating that a preliminary injunction of the proposed acquisition is in the public interest." The judge's decision was grounded in the Commission's ability to show a reasonable probability that the acquisition would significantly impair competition in the relevant market.
IQVIA expressed disappointment with the court's decision and conveyed its intention to continue the legal battle. A company spokesperson stated, "We are reviewing the decision and evaluating our options. We maintain that the FTC’s arguments in this case are inconsistent with the reality of the marketplace and unsupported by the law."
The ruling marks a vital moment in the ongoing legal struggle between IQVIA and the FTC, setting the stage for continued legal proceedings as IQVIA vows to contest the decision.