FTC Imposes Conditions On Pfizer’s Upjohn & Mylan Deal

Pharmaceutical companies Pfizer and Mylan have agreed to divest assets and abide by other conditions to settle Federal Trade Commission (FTC) charges that the proposed combination of Upjohn and Mylan will harm current or future competition in ten generic drug markets. 

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 US$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 of: (1) amlodipine besylate/atorvastatin calcium tablets, which combine a calcium channel blocker to treat hypertension with a lipid-lowering agent to treat high cholesterol; (2) eplerenone tablets, a diuretic prescribed in combination with other medications when treating hypertension or congestive heart failure after a heart attack; (3) phenytoin chewable tablets, which are used to prevent epileptic seizures; (4) prazosin HCl capsules, an alpha-adrenergic blocker that treats hypertension by relaxing the veins and arteries so that blood can more easily pass; (5) spironolactone HCTZ tablets, a diuretic used to treat hypertension; (6) gatifloxacin ophthalmic solution, an eye drop that treats bacterial conjunctivitis; and (7) medroxyprogesterone acetate injectable solution, an injectable solution used to treat certain types of dysfunctional uterine bleeding.

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