Mark Iandolo Feb. 19, 2016, 2:00pm


WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) has reached a settlement with Lupin Ltd. and Gavis Pharmaceuticals LLC to resolve allegations that Lupin’s acquisition of Gavis would be anti-competitive.

In order to settle the FTC charges, the generic drug manufacturers will sell the rights and assets for two generic drugs, one for bacterial infections and one for ulcerative colitis. The consent order mandates the divestiture of these products to New Jersey-based generic pharmaceutical company G&W Laboratories.

The merger would have combined two of the only four companies that market the bacterial infection-fighting drug, the FTC said. This would likely lead to higher prices and be anti-competitive. Additionally, the merger would have eliminated one of only a few companies likely to enter the market for the ulcerative colitis treatment drug. This could have delayed beneficial competition. The settlement and divestiture solves these issues.

Gavis and Lupin not only will divest the products but also all confidential business data related to the products. They must provide access to knowledgeable employees so that G&W can gain FDA approvals in an expedient manner.

The commission voted 4-0 to issue the complaint and accept the proposed consent order for public comment.

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