Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Valeant Pharmaceuticals settles FTC charges over Precision Dermatology acquisition, (Jul 3, 2014)
Organizations Mentioned:Actavis, Inc. | Precision Dermatology, Inc. | Valeant Pharmaceuticals International, Inc.
By Linda O’Brien, J.D., LL.M.
In order to proceed with its proposed $475 million acquisition of Precision Dermatology, Inc., Valeant Pharmaceuticals International, Inc. has agreed to sell or relinquish rights to Precision’s branded single-agent topical tretinoins and generic Retin-A, common acne treatments, to settle FTC competition concerns, the agency announced today (In re Matter of Valeant Pharmaceuticals International, Inc., FTC Dkt, C-4477, File No. 141-0101).
In its complaint, the FTC alleged that Valeant’s proposed acquisition of Precision would likely reduce competition in the market for branded and generic single-agent topical tretinoins, and in a separate market for generic Retin-A. Valeant and Precision are the only two significant suppliers of branded single-agent topical tretinoins, and the proposed acquisition would eliminate current competition between them. The companies are also the two largest suppliers of generic Retin-A. The proposed acquisition would give Valeant a monopoly in four of five versions of generic Retin-A and reduce competition in the remaining version.
Under the proposed consent order to settle the FTC charges, Valeant is required to sell Precision’s assets related to Tretin-X, its branded single-agent topical tretinoin, to Actavis, Inc., and Precision’s assets related to generic Retin-A to Matawan Pharmaceuticals LLC, a subsidiary of Rouses Point Pharmaceuticals, LLC, within 10 days of consummating the transaction. In addition, Actavis and Matawan will each receive partial assignments of the manufacturing contracts for both Tretin-X and generic Retin-A. If the FTC finds that Actavis or Matawan are not acceptable acquirers of the drugs, it can require Valeant to unwind the sales and divest the drugs to another FTC-approved buyer within six months.
Companies: Valeant Pharmaceuticals International, Inc.; Precision Dermatology, Inc.
News: Antitrust FederalTradeCommissionNews