IQVIA and DeepIntent’s Blocked Merger: Impact on Healthcare Advertising

Summary:

  • DeepIntent, part of Propel Media, entered into an agreement with IQVIA with the aim of improving communication between patients and healthcare providers.
  • The FTC intervention blocked a merger between IQVIA and DeepIntent, citing potential harm to competition and increased prices for consumers.
  • Judge Edgar Ramos granted the U.S. antitrust department a preliminary injunction to block this merger.
  • Despite this, DeepIntent has confirmed it will remain independent should the block be enforced.

DeepIntent and IQVIA’s Proposed Merger

Propel Media’s DeepIntent inked a deal with US company IQVIA in 2022, aimed at streamlining communication between healthcare providers and patients. However, their proposed merger was halted by the Federal Trade Commission (FTC) over concerns about potential negative impacts on competition within the health care programmatic advertising market along with potential customer price hikes.

The FTC’s Intervention

The FTC suggested that the merger would adversely affect patients and result in increased consumer prices. DeepIntent’s CEO had earlier stated that the company would renege on the deal and remain autonomous if the regulator successfully blocked the merger. However, the financial particulars of the agreement have not been made public.

US Antitrust Department Injunction

A preliminary injunction to prevent the merger was granted by Judge Edgar Ramos in favour of the FTC. Ramos’ ruling stated, “The FTC has demonstrated that there’s a reasonable likelihood that the proposed acquisition will significantly diminish competition within the relevant market and that the balance of equity supports injunctive relief.”

IQVIA’s Response

IQVIA contested the FTC’s arguments, maintaining that they were not in line with marketplace realities and lacked legal support.

The outcome of this case may influence decisions in the forex or trading markets, particularly for assets related to either DeepIntent or IQVIA. Future developments could impact the valuation of these assets.

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