FTC Approves Final Order Settling Charges That Akorn Enterprises’ Acquisition of Hi-Tech Pharmacal Was Anticompetitive
- Created on Friday, 20 June 2014 13:36
- Written by IVN
Washington, DC - Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Akorn Enterprises’ $640 million acquisition of Hi-Tech Pharmacal, Inc. was anticompetitive and would lead to higher prices for consumers in several current and future generic drug markets.
According to the FTC’s complaint, originally announced in April 2014, the acquisition as proposed would reduce competition in the markets for four generic medications, including eye drops and topical anesthetics, and would reduce future competition in the market for a generic ointment prescribed to treat bacterial eye infections.
The final order settling the FTC’s charges requires the parties to sell either Akorn’s or Hi-Tech’s rights and assets to each of the five drug products to Watson Laboratories, Inc., and required Akorn to assign Watson its contract for making a currently available branded and generic topical anesthetic cream within 10 days after the deal is completed.
The Commission vote approving the final order was 4-0-1, with Commissioner Terrell McSweeny not participating. (FTC File No. 131-0221; the staff contact is Lisa De Marchi Sleigh, Bureau of Competition, 202-326-2535)