FTC stipulates divestments for Valeant acquisitions

Canada’s Valeant Pharmaceuticals International (TSX: VRX) has been ordered by the USA’s Federal Trade Commission to divest three drugs used to treat different skin ailments, as conditions of its $345 million acquisition of Ortho Dermatologics, from Johnson & Johnson, and $425 million buy of Sanofi’s Dermik Laboratories (The Pharma Letters July 11 and 18).

Under the settlements, Valeant will sell the manufacturing and marketing rights to drug products that treat acne and actinic keratosis, a pre-cancerous skin lesion, to Mylan Pharmaceuticals. Valeant will also sell the marketing rights to a drug that treats fine line wrinkles to Spear Pharmaceuticals. Both settlements preserve competition and prevent higher prices that likely would have resulted from the acquisitions, said the US antitrust agency.

Dermik addition would reduce competition for two skin-care products