US FTC puts conditions on Novartis buy of Fougera

The USA’s Federal Trade Commission said yesterday that it will require Swiss drug major drug Novartis (NOVN: VX) to give up its marketing rights to four topical skin care products, under a proposed settlement resolving charges that the company’s acquisition of private equity-owned generics firm Fougera Holdings would harm competition in the market for these topical drugs.

The settlement order requires Novartis to end a marketing agreement that allows it to sell three topically-applied generic drugs and return all rights to a fourth generic drug in development to its contract manufacture Tolmar.

Earlier this year, Novartis entered into an agreement under which it proposes to acquire Fougera in a deal valued at around $1.5 billion (The Pharma Letter May 3). According to the FTC's complaint, Novartis' acquisition of Fougera would violate the FTC Act and Section 7 of the Clayton Act by reducing competition in the generic drug markets for three skin care drugs: generic versions of calcipotriene topical solution; lidocaine-prilocaine cream; and metronidazole topical gel. The complaint also alleges that the acquisition would eliminate potential competition in the market for the sale of diclofenac sodium gel.