October 3, 2012
By: Jennifer Fiala
For The VIN News Service
The markup on pet medications sold in Dr. Link Welborn’s Tampa-area veterinary practices is half of what it was three years ago due to price cuts compelled by competition for drug sales.
Still, Welborn writes prescriptions daily in hopes that owners who save money on medications might spend more on needed medical care. He’d rather run blood work to help identify the cause of a patient’s illness than merely sell an antibiotic to treat some mystery infection.
“Virtually every veterinary visit includes two conversations: one about care and one about costs,” Welborn said Tuesday at Federal Trade Commission (FTC) offices in Washington, D.C. “Veterinarians help pet-owning consumers spend their money wisely every day.”
Welborn’s insight culminated eight hours of panel talks to explore whether government action is needed to ensure that consumers can price shop for pet medications. Traditionally, veterinarians both prescribe and sell drugs — a system that some consider a conflict of interest. With online pharmacies and retailers seeking a slice of the pet medications market, competitors want to require veterinarians to provide prescriptions automatically to pet owners, whether requested or not.
In response, FTC officials are eyeing the pet product distribution landscape, anticipating that the passage of a bill in Congress will require the agency to promulgate rules related to veterinary prescriptions.
The Fairness to Pet Owners Act of 2011, or HR 1406, is buried in a House subcommittee where it’s unlikely to emerge for a vote this year. Nevertheless, the FTC is paying attention. Charged with protecting consumers, agency officials called for Tuesday’s workshop to determine how pet owners are impacted by a convoluted distribution system characterized by exclusionary sales policies and clandestine transactions.
Drug company officials, antitrust lawyers, online pharmacy representatives, leaders with the American Veterinary Medical Association (AVMA) and a former Wal-Mart insider are among those who gathered to debate the issues. While some accused veterinarians of engaging in anticompetitive behavior by discouraging clients from shopping outside their practices, many pointed the finger at manufacturers that have policies to limit product sales to practicing veterinarians.
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