A PYMNTS Company

Johnson & Johnson Suspends Plans Of Buying Japanese Pharmaceutical

 |  April 12, 2020

Johnson & Johnson (J&J) suspended its plans of buying Takeda Pharmaceutical’s TachoSil on Friday, April 10. The American multinational corporation cited regulatory concerns for abandoning the deal.

Takeda Pharmaceutical is the largest drug manufacturer in Japan. Takeda had revealed in May 2019 that J&J’s subsidiary, Ethicon, wishes to buy its surgical patch that is used to control bleeding for £320 million (US$398.56 million).

Johnson & Johnson’s representative was reported commenting on Friday, “Ethicon and Takeda have mutually decided to terminate the TachoSil transaction, agreeing that it was the right decision given the regulators’ concerns.”

Chairman Joseph Simons of the Federal Trade Commission (FTC) released a statement earlier on Friday highlighting regulatory concerns regarding the J&J-Takeda deal. Simons said that the regulatory issues stem from the fact that J&J is the manufacturer of the only other fibrin sealant patch that is approved for use in the United States. J&J’s patch is available in the US by the name of Evarrest and is widely used during surgeries to control bleeding.

According to Simons’ email, “Staff had significant concerns about the likely anticompetitive effects and had recommended that the Commission block the transaction. Now that the deal has been abandoned, patients and surgeons will continue to benefit from competition.”

Full Content: Yahoo

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.