US FTC calls for divestitures for Impax buy of CorePharma to proceed

US generic drugmaker Impax Laboratories (Nasdaq: IPXL) takeover target CorePharma have agreed to divest all of CorePharma’s rights and assets to generic pilocarpine tablets and generic ursodiol tablets, in order to settleFederal Trade Commission charges that Impax’ proposed $700 million acquisition of CorePharma, that was announced last fall, would likely be anticompetitive.

Perrigo (NYSE: PRGO), a global drug company headquartered in Ireland that markets generic drugs in the USA, will acquire the divested assets. Under the proposed settlement, Impax and CorePharma must also provide transitional services and take all actions that are necessary for Perrigo to obtain FDA approval to manufacture and market generic pilocarpine and ursodiol tablets.

CorePharma’s independent entry would likely have resulted in much lower prices