Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves modified final order after Perrigo acquisition abandoned by Mylan, (Feb 22, 2016)

By Michael Menzhuber, J.D., LL.M.

A modified final order—settling charges that Mylan N.V.’s proposed hostile takeover of Perrigo Company plc, would harm competition—has been approved by the FTC, the agency announced today (In the Matter of Mylan N.V., FTC File No. 151-0129).

According to the FTC complaint, as originally composed, the proposed acquisition would have likely harmed competition in U.S. markets for seven generic pharmaceutical products. To settle FTC charges that the proposed acquisition would be anticompetitive, Mylan agreed to sell the rights and assets related to seven generic drugs to Alvogen Group, Inc., a New Jersey-based generic pharmaceutical company.

Mylan was unable to obtain the required threshold of Perrigo shares to succeed in its unsolicited offer and, subsequently, abandoned the proposed acquisition. As a consequence of the proposed acquisition of Perrigo being abandoned, the FTC issued a decision and order that:

• relieves the interim monitor, appointed by the FTC to ensure Mylan’s compliance, with the order of his duties; and

• requires that Mylan submit annual compliance reports for three years, instead of ten years.

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