{"id":2667,"date":"2018-04-12T13:54:01","date_gmt":"2018-04-12T20:54:01","guid":{"rendered":"http:\/\/phosdev.com\/todaysveterinarybusiness\/?p=2667"},"modified":"2022-03-10T18:06:55","modified_gmt":"2022-03-10T18:06:55","slug":"drug-distributors-accuse-petiq-antitrust-violations","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/drug-distributors-accuse-petiq-antitrust-violations\/","title":{"rendered":"Drug distributors accuse PetIQ of antitrust violations"},"content":{"rendered":"

Two veterinary drug wholesalers claim that PetIQ stands to monopolize the distribution of pet parasiticides, particularly Frontline Plus, to retailers following PetIQ\u2019s takeover of the VIP Petcare chain.<\/p>\n

Sister companies Med Vets Inc. and Bay Medical Solutions Inc. stated in their antitrust lawsuit that PetIQ\u2019s $220 million purchase<\/a> of VIP Petcare earlier this year provided PetIQ with \u201csubstantial buying power\u201d and the ability to dominate retail distribution of brand-name pet parasiticides. While PetIQ manufactures and sells generic parasiticides to mass retailers such as Walmart, Kroger and Costco, VIP operates thousands of pop-up veterinary clinics nationwide, offering vaccinations and prescribing parasite preventives and treatments.<\/p>\n

PetIQ is incentivized to capitalize on VIP Petcare\u2019s drug purchase agreements, the lawsuit stated.<\/p>\n

\u201cVIP received from Merial and other manufacturers discriminatory pricing, permitting VIP to achieve a majority share of the distribution of Merial\u2019s Frontline Plus and other manufacturer-limited OTC medications customarily supplied to retailers through the secondary distribution system,\u201d the lawsuit claimed.<\/p>\n

One of Bay Medical\u2019s top offerings is Frontline Plus, a leading flea-and-tick product.<\/p>\n

A PetIQ spokesperson called the lawsuit \u201cmeritless\u201d and said, \u201cWe are confident we will prevail in any litigation related to our acquisition of VIP Petcare.\u201d<\/p>\n

\u201cPetIQ is committed to the highest ethical and legal standards, and we intend to defend ourselves vigorously in a court of law at the appropriate date,\u201d the spokesperson said. \u201cPetIQ has focused on providing pet owners convenient access and affordable choices to a broad portfolio of pet health and wellness products across its network of retailers, and with this acquisition, we are now able to provide the same convenience and affordability with veterinarian care.\u201d<\/p>\n

The lawsuit was filed April 4 in U.S. District Court in San Francisco, near VIP Petcare\u2019s Windsor, California, headquarters.<\/p>\n

The plaintiffs\u2019 attorney, Jonathan Rubin, said the merger of VIP Petcare and PetIQ \u201cis bad for competition.\u201d<\/p>\n

\u201cAnd that means it\u2019s bad for consumers and pet owners, who\u2019ll have to pay higher prices as a result,\u201d Rubin said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Med Vets and Bay Medical Solutions say PetIQ\u2019s purchase of VIP Petcare will lead to unfair competition.<\/p>\n","protected":false},"author":7,"featured_media":2668,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[90],"tags":[],"class_list":["post-2667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-online","column-news","clinical_topics-news"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"\nDrug distributors accuse PetIQ of antitrust violations | Today's Veterinary Business<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Drug distributors accuse PetIQ 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