Antitrust regulators at the FTC gave
thumbs up to Mylan Laboratories Inc?s
acquisition of Merck KGaA?s German generic
drug operations, but only after the companies
agreed to divest 5 medicines.
In order to secure the agency?s antitrust
blessing, the manufacturers approved plans
to sell 5 generic drugs to Amneal Pharmaceuticals. The drugs
to be divested under the arrangement include flecainide
acetate, an antiarrhythmia medicine, plus 4 hypertension
treatments: acebutol hydrochloride, sotalol hydrochloride AF,
guanfacine hydrochloride, and nicardipine hydrochloride.
All 5 products were marketed by both firms, and FTC officials
had argued that, without the divestiture, the proposed $6.6-billion
acquisition would have ?significantly reduced competition
for the sale and manufacture of (these) 5 generic drugs.?
?The Commission believes strongly in the benefits of lowpriced
generic alternatives to branded drugs and strong competition
between generic-drug manufacturers,? said Jeffrey
Schmidt, director of the FTC?s Bureau of Competition. ?The
order?will ensure that competition is maintained following
the completion of this acquisition.? Industry sources expect
the acquisition to triple Mylan?s already solid foothold in the
generic-pharmaceutical market.
Inside the Issue
