FTC puts conditions on Akorn’s proposed acquisition of VersaPharm

The US Federal Trade Commission revealed yesterday that US generics drugmaker Akorn (Nasdaq: AKRK) has agreed to sell its rights to develop, manufacture, and market the generic injectable tuberculosis drug, rifampin, in order to settle FTC charges that Akorn’s proposed acquisition of VersaPharm and its parent company, VPI Holdings, would likely be anticompetitive.

The FTC’s proposed settlement with Akorn requires the company to divest its Abbreviated New Drug Application for generic injectable rifampin – which is currently pending before the Food and Drug Administration – to Watson Laboratories (a unit of Actavis [NYSE: ACT]). Akorn proposes to  acquire VersaPharm for around $324 million.

According to the FTC’s complaint, only VersaPharm and two other firms currently have FDA approval to sell generic injectable rifampin. There are no viable substitutes for rifampin as a course of treatment for tuberculosis.