Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC approves modified order in ‘anticompetitive’ $2B pharmaceutical deal, (May 5, 2016)

By Greg Hammond, J.D.

The FTC approved a modified final order yesterday that settles charges that Hikma Pharmaceuticals PLC’s $2 billion acquisition of Roxane Laboratories Inc. and Boehringer Ingelheim Roxane, Inc. would likely lessen competition or tend to create a monopoly (In the Matter of Hikma Pharmaceuticals PLC, Dkt. C-4568, File No. 151 0198).

The Commission issued a complaint in February, claiming that the transaction would eliminate competition between Hikma and Roxane and reduce the number of independent significant competitors in the markets for generic 5 mg, 10 mg, and 20 mg prednisone tablets and generic lithium capsules. The transaction allegedly would increase the likelihood that: (1) Hikma would be able to unilaterally exercise market power in these markets; (2) the remaining competitors would engage in coordinated interaction between or among each other; and (3) customers would be forced to pay higher prices. The complaint also asserts that future competition would be eliminated between Hikma and Roxane in the generic flecainide tablets market, increasing the likelihood that the combined entity would forgo or delay the launch of the generic flecainide tablets.

Under the terms of the final order, Hikma must divest its prednisone tablet and lithium carbonate capsule assets to Renaissance Pharma, Inc. In addition, Hikma must relinquish its rights to market flecainide acetate tablets to its drug development partner, Unimark Remedies Ltd., which Hikma must also divest its ownership interest in. The order was modified to extend the deadline for divestiture by 20 days, the FTC announced.

Companies: Hikma Pharmaceuticals PLC; Roxane Laboratories, Inc.; Boehringer Ingelheim Roxane, Inc.; Boehringer Ingelheim Corp.; Renaissance Pharma, Inc.

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