FTC puts conditions on acquisition of Insight Pharma by Prestige Brands

US firm Prestige Brands Holdings (NYSE: PBH), the maker of Dramamine (dimenhydrinate), has agreed to divest assets and marketing rights for the over-the-counter motion sickness drug Bonine (meclizine) to settle US Federal Trade Commission charges that Prestige’s proposed acquisition of Insight Pharmaceuticals would likely be anticompetitive.

The FTC’s proposed settlement with Prestige requires the company to divest Bonine to Wellspring Pharmaceuticals within 10 days after the acquisition takes place.

Based in Sarasota, Florida, Wellspring produces a range of over-the-counter medicines and markets them in the USA and Canada. Prestige proposed to acquire Insight for $750 million, under an agreement signed in April 2014.