FTC imposes conditions on combination of Pfizer Upjohn and Mylan
Topics: PFIZER MYLAN
Under the proposed deal, Pfizer will spin off its Upjohn division which includes Pfizer’s authorized generic business Greenstone and combine it with Mylan. The new entity will be called Viatris. Pfizer will receive $12 billion from Viatris as partial consideration for the Upjohn spin-off.
The FTC’s complaint alleges that the proposed combination would harm current U.S. competition in seven product markets by reducing the number of existing suppliers.
In three additional product markets, according to the complaint, the proposed combination would delay or eliminate a likely entrant, reducing the likelihood that prices would decrease in the future.
The proposed settlement seeks to remedy competitive concerns in these ten generic pharmaceutical markets by requiring the parties to divest to Prasco, LLC the rights and assets related to Upjohn’s amlodipine besylate atorvastatin calcium tablets, phenytoin chewable tablets, prazosin HCl capsules, spironolactone HCTZ tablets, gatifloxacin ophthalmic solution, and medroxyprogesterone acetate injectable solution. The parties must also divest the rights and assets related to Mylan’s eplerenone tablets.
The proposed order also requires prior Commission approval before Upjohn, Mylan, or Viatris may gain an interest in or exercise control over any third party’s rights to levothyroxine sodium tablets, sucralfate tablets, and varenicline tartrate tablets.
Commission staff and the staff of antitrust agencies in Australia, Canada, the European Union, and New Zealand worked cooperatively to analyze the proposed transaction and potential remedies. ■