N.Y. Comp. Codes R. & Regs. tit. 11 § 457.2

Current through Register Vol. 46, No. 53, December 31, 2024

Section 457.2 - Prior approval required for acquisition of control of licensed pharmacy benefit managers

(a) No person shall acquire control of any licensed pharmacy benefit manager, whether by purchase of its securities or otherwise, unless such person receives the superintendent's prior approval.

(b) The superintendent shall disapprove such acquisition if the superintendent determines, after notice and an opportunity to be heard, that such action is reasonably necessary to protect the interests of the people of this State. The following factors may be considered in making such determination:

(1) the financial condition of the acquiring person and the pharmacy benefit manager;

(2) the trustworthiness of the acquiring person or any of its officers or directors;

(3) whether the applicant has a plan for the proper and effective conduct of the pharmacy benefit manager's operations;

(4) the source of the funds or assets for the acquisition;

(5) the fairness of any exchange of shares, assets, cash or other consideration for the shares or assets to be received;

(6) whether the effect of the acquisition may contribute to excessive concentration and vertical integration of markets; and

(7) whether the acquisition is likely to be hazardous or prejudicial to health plans, covered individuals, pharmacies, or any other stakeholders in the pharmaceutical supply chain.

(c) The superintendent may determine upon application that any person does not or will not upon the taking of some proposed action control a pharmacy benefit manager. An application for a determination that a person does not, or will not upon the taking of some proposed action, control a pharmacy benefit manager shall contain a detailed statement explaining why such person should not be determined to control the pharmacy benefit manager and any other information the superintendent may request.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 457.2

Adopted New York State Register November 27, 2024/Volume XLVI, Issue 48, eff. 11/27/2024