US FTC Approves Sun Pharma’s Acquisition of Ranbaxy with ConditionsBy
The US Federal Trade Commission (FTC) has approved Sun Pharmaceutical Industries Ltd.’s proposed $4 billion acquisition of Ranbaxy Laboratories Ltd. pending Ranbaxy's divestments in in its interests in generic minocycline tablets and capsules. Torrent Pharmaceuticals Ltd., a global drug company based in India that markets generic drugs in the United States, will acquire the divested assets.
Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections. According to the FTC, the proposed merger would likely limit future competition by reducing the number of suppliers in the US markets for three dosage strengths (50 mg, 75 mg, and 100 mg) of generic minocycline tablets. Ranbaxy is currently one of three suppliers of the products while Sun is one of only a limited number of firms likely to sell generic minocycline tablets in the United States in the near future.
Under the proposed settlement, Sun and Ranbaxy must also sell Ranbaxy's generic minocycline capsule assets to Torrent, to enable Torrent to achieve regulatory approval for a change in ingredient suppliers for its minocycline tablets as quickly as Ranbaxy would have been able to do in the absence of the deal. In addition, Sun and Ranbaxy must supply generic minocycline tablets and capsules to Torrent until the company establishes its own manufacturing infrastructure. The FTC has appointed an interim monitor to ensure that Torrent receives the support it needs from Sun and Ranbaxy during the divestiture process.
Sun Pharma and Ranbaxy said they are working closely toward completion of the transaction and will comply with the conditions laid down in the FTC consent agreement within the specified time.
Source: FTC and Sun Pharma