US antitrust regulator calls for divestments for Mylan buy of Meda to proceed

Following a public comment period, the US Federal Trade Commission has approved a final order settling charges that Netherlands-incorporated drugmaker Mylan’s (Nasdaq: MYL) $7.2 billion acquisition of Swedish drugmaker Meda (OMX: MED A) would likely be anticompetitive.

Under the FTC’s order, first announced in July 2016, the companies will be required to divest the US rights to two generic drugs, 250mg generic carisoprodol tablets, which treat muscle spasms and stiffness, and 400 mg and 600mg generic felbamate tablets, which treat refractory epilepsy.

The FTC sought the drug divestments on the grounds that the acquisition would likely have otherwise led consumers to pay higher prices, and that it would also have eliminated competition between Mylan and Meda in the markets for both drugs.