AbbVie won US antitrust approval for its acquisition of Botox maker Allergan, clearing the last hurdle from competition regulators to the $63 billion deal.
The Federal Trade Commission said late Tuesday that it signed off on the takeover after the companies agreed to resolve competition concerns by selling two products to Nestle SA and transferring to AstraZeneca Plc the rights to a treatment for Crohn’s disease that’s in development.
The commission voted 3-2 to clear the deal, with the three Republicans voting in favor of the settlement and the two Democratic commissioners voting against.
One of the Democrats, Commissioner Rohit Chopra, blasted the majority’s decision, saying it’s a “risky gamble” to think Nestle can enter the market and restore competition because the Swiss company is primarily in the packaged-food business. Chopra also criticized the FTC’s process for evaluating pharmaceutical deals, in which the agency looks at overlapping drugs of the merging companies, reported Reuters.
“The agency’s default strategy of requiring merging parties to divest overlapping drugs is narrow, flawed, and ineffective,” he said. “It misses the big picture, allowing pharmaceutical companies to further exploit their dominance, block new entrants, and harm patients in need of life-saving drugs.”
The Republican majority fired back, arguing that the settlement fully resolves competitive harm from the merger.
“His dissent makes misleading claims about the staff’s investigation, the state of competition in the pharmaceutical industry, and the commission’s enforcement record in this industry,” they said. “It relies on false assertions, misapplication of law, and specious logic.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI