US FTC requires divestment for Mylan acquisition of Meda to proceed

Netherlands-incorporated drugmaker Mylan (Nasdaq: MYL) has agreed to divest the rights and assets related to two generic pharmaceutical products to settle US Federal Trade Commission charges that its proposed $7.2 billion acquisition of Swedish drugmaker Meda (OMX: MED A) would be anti-competitive.

The FTC order preserves competition in the markets for 250mg generic carisoprodol tablets, which treat muscle spasms and stiffness, and for 400mg and 600mg generic felbamate tablets, which treat refractory epilepsy. Without a remedy, the acquisition would combine two of three companies currently offering 400mg and 600mg generic felbamate tablets, likely leading consumers to pay higher prices and would eliminate future competition between Mylan and Meda in the market for 250mg generic carisoprodol tablets.

Under the proposed order, the USA-based generic pharmaceutical company Alvogen Pharma will acquire all of Mylan’s rights and assets related to felbamate tablets. The proposed order also requires Mylan to provide transitional services and take all actions that are necessary for Alvogen to obtain FDA approval to manufacture and market the generic felbamate tablets.