US regulator puts conditions on Johnson & Johnson's proposed buy of Synthes

The US Federal Trade Commission will require health care giant Johnson & Johnson (NYSE: JNJ) to sell its system for surgically treating serious wrist fractures, resolving charges that J&J's proposed $21.3 billion acquisition of Switzerland-headquartered Synthes (The Pharma Letter April 27, 2011) would illegally reduce competition for these systems.

J&J intends to sell its system, known as DVR, along with the rest of its product line for treating traumatic injuries, to Biomet. Earlier this year the European Commission cleared the proposed of Synthes by J&J, but also with conditions, which including the divestment of J&HJ’s trauma business (TPL April 22).

The case is the most recent example of the FTC's ongoing effort to promote competition in the health care sector, which benefits US consumers by keeping prices low and quality and choice of products and services high, the agency said. J&J and Synthes together would have more than 70% of the U.S. market for the wrist fracture treatment systems, according to the FTC.