US judge allows FTC to temporarily block IQVIA’s acquisition of DeepIntent By Reuters

© Reuters. FILE PHOTO: The Federal Trade Commission seal is seen during a press conference at FTC headquarters in Washington, USA, July 24, 2019. REUTERS/Yuri Gripas/File Photo/File Photo

Written by GursimranKaur Mehar and Mrinmay Dey

(Reuters) – A U.S. court on Friday upheld a Federal Trade Commission (FTC) order barring IQVIA from acquiring healthcare advertising company DeepIntent on the grounds that it could harm competition.

DeepIntent, owned by digital advertising company Propel Media, has signed a deal with US-based healthcare data and analytics company IQVIA in 2022 to facilitate seamless communication between patients and healthcare providers.

Earlier this year, the FTC intervened to block the proposed merger of IQVIA and DeepIntent to prevent the focus on advertising for healthcare programs.

The FTC said the merger would harm competition and lead to higher prices for consumers, harming patients.

Previously, DeepIntent’s CEO said in an open letter that if regulators win the block, the company would withdraw from the deal and remain an independent company. The financial terms of the deal are unknown.

In favor of the FTC, District Judge Edgar Ramos issued a preliminary injunction directing the U.S. antitrust division to block the deal.

“The FTC has shown that there is a reasonable likelihood that the proposed acquisition will materially inhibit competition in the relevant market and that the stock is entitled to injunctive relief,” Ramos said in his ruling.

IQVIA said in an emailed statement to Reuters that it was disappointed by the court’s decision and was reviewing the decision and evaluating its options.

“We assert that the FTC’s claims in this case are inconsistent with market reality and have no legal basis,” IQVIA said.

DeepIntent and the FTC did not immediately respond to Reuters’ request for comment.