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CVS
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216 days

FTC takes fresh swipe at drug middlemen, says some prices marked up over 1,000% - MarketWatch

1. FTC criticizes pharmacy-benefit managers for high prescription drug markups. 2. Significant markups generated $7.3 billion for top three PBMs from 2017 to 2022. 3. Regulatory scrutiny may influence pricing strategies of companies like CVS. 4. Middlemen face increased pressure, potentially impacting CVS's drug procurement costs.

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FAQ

Why Bearish?

Regulatory criticism can affect profit margins and operational costs for CVS. Past regulatory actions have led to significant market adjustments.

How important is it?

High relevance as CVS operates within the PBM space. Changes in market dynamics could directly impact CVS's revenue.

Why Short Term?

Immediate scrutiny may force CVS to re-evaluate pricing strategies. Quick market response expected due to consumer sensitivity.

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