Actavis and Forest to divest four generics to gain FTC OK for merger

1 July 2014

In order for Ireland-headquartered generics major Actavis (NYSE: ACT) to complete its previously-announced $25 billion takeover of Forest Laboratories (NYSE: FRX; The Pharma Letter February 18), the companies have agreed to sell or relinquish their rights to four generic pharmaceuticals, to settle US Federal Trade Commission charges that Actavis’ acquisition of Forest likely would be anticompetitive.

According to the FTC’s complaint, Actavis’ acquisition of Forest, as originally proposed, would violate federal antitrust laws by reducing competition in the markets for three current generic products:

generic diltiazem hydrochloride extended release capsules (AB4) used to treat hypertension and chronic stable angina;

generic ursodiol tablets used to treat primary biliary cirrhosis of the liver; and

generic propranolol hydrochloride extended release capsules used to treat hypertension.

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