Key Highlights:
- The FTC approved Aurobindo Pharma’s $250 million acquisition of Lannett Company subject to divestitures, citing concerns that the deal would reduce competition and increase prices across four generic drug markets.
- Under the proposed consent order, Aurobindo must divest four generic products to Quagen Pharmaceuticals: mycophenolate mofetil oral suspension, niacin extended-release tablets, pilocarpine tablets, and rabeprazole sodium delayed-release tablets.
- The FTC said the transaction would combine two key competitors in these markets, potentially leading to higher generic drug prices. The order also requires transition support and compliance monitoring to ensure Quagen can effectively operate the divested assets.
Implications:
The FTC is allowing Aurobindo’s $250 million Lannett deal only with a divestiture remedy, which should keep competition intact in four generic drug markets and prevent price increases; strategically, the buyer still gets the broader acquisition benefits, but it must hand over mycophenolate mofetil oral suspension, niacin ER tablets, pilocarpine tablets, and rabeprazole sodium DR tablets to Quagen, along with transition support and oversight, so the main market implication is a cleaner close with reduced antitrust risk rather than a free-and-clear consolidation.
Source: FTC
