for all uninformed shorts searching for any shread of hope to force RAD lower, pls keep plugging the PCS thing b/c you dont' know what you're talking about--pls keep shortin' b/c you will only have to cover and force up RAD.
I use to work at PCS and am familar with the practices stated in the subpenoa.
#1--the pharma companies are the ones liable for medicaid best price issues, not PBM's
#2 the switching/incentive/formulary practices have been around for about 10 yrs, starting with Medco and Caremark. There's nothing here. The only time you get in trouble is when you get DIRECT payments for switching, something Bayer did, for example, with ADalat CC. They got nailed. No one does this.
#3 enforcing the formulary (getting MD's to write the formulary drugs) is WHY pharma companies pay rebates--if you don't have formulary enforcement, your just Joe's pharmacy and we've already been thru that legal morass with indep pharmacies and pharma companies.
as to why PCS was not sold, the mkt has tanked recently for potential suitors. Any PBM like Advanced wouldn't care about the subpenoa (they may have even got one).