A PYMNTS Company

What Past US Agency Actions Say About Complexity in Merger Remedies, With an Application to Generic Drug Divestitures

By  |  November 6, 2017

Posted by Social Science Research Network

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    What Past US Agency Actions Say About Complexity in Merger Remedies, With an Application to Generic Drug Divestitures

    By Eric Emch & Arthur Zhou (Bates White Economic Consulting); Thomas D. Jeitschko (Michigan State University)

    Abstract:      We consider merger remedies of the US Department of Justice’s Antitrust Division and the US Federal Trade Commission between 2008 and 2017. Traditionally one distinguishes between structural and behavioral remedies—and structural remedies are generally considered to be more effective and easier to implement. Our analysis suggests that over time this distinction has become somewhat blurred and a better gradation of remedies may be tied to the complexity of the proposed remedy. Divestitures in the market for generic drugs, in particular, are particularly complex, even though the remedies are of a structural, and so their efficacy is hard to ascertain.

    Continue Reading…