WASHINGTON (Legal Newsline) –
The Federal Trade Commission (FTC) announced Nov. 7 that Canadian
pharmaceutical conglomerate Valeant Pharmaceuticals International Inc., parent
company of Bausch + Lomb, will divest Paragon Holdings Inc.
The divestiture comes after allegations its
May 2015 acquisition of Paragon violated Section 7 of the Clayton Act and
Section 5 of the Federal Trade Commission Act.
The FTC claimed that the
acquisition eliminated competition between the two companies for the sale of
Food and Drug Administration-approved buttons used for three types of rigid gas permeable (GP) lenses – orthokeratology lenses
that reshape to the cornea, large-diameter scleral lenses for use after surgery
and for treating eye disease, and general vision correction lenses.
According to the FTC, the
acquisition combined the two largest manufacturers of GP buttons; 70 percent of
the GP button market for all three button types was put under one company with
Valeant agreed to sell
Paragon to a new entity – Paragon Cos LLC. This organization is headed by
former Paragon President Joe Sicari.
The FTC voted 3-0 to issue
the complaint and accept the proposed consent order, which will now go before
public comment for 30 days before finalization.