FTC allows Teva petition to reopen and Watson Pharma's Actavis acquisition

Israel-based Teva Pharmaceutical Industries’ (NYSE: TEVA) application to reopen and modify its decision and order in connection with the 2012 merger of Watson Pharmaceuticals and Actavis has been approved by the US Federal Trade Commission.

The Commission had alleged that the merger might lessen future competition for a number of generic drugs, including the generic version of the abuse-resistant opioid painkiller sold under the brand name Embeda (morphine sulfate and naltrexone hydrochloride).

The 2012 decision and order required Watson and Actavis to supply Embeda to Pfizer (NYSE: PFE) for a period not to exceed four years after Pfizer’s relaunch of Embeda, which occurred in January 2015. The decision and order also required Watson and Actavis to assist in the transfer of technology for manufacturing Embeda to Pfizer or a third party. In 2016, Teva acquired Actavis’ rights and obligations under the Embeda supply agreement.