FTC Approves Final Valeant Order
The Federal Trade Commission (FTC) has approved a final order settling charges that Valeant Pharmaceuticals International, the parent company of Bausch & Lomb, illegally acquired Paragon Holdings, a producer of polymer discs used in making rigid gas permeable contact lenses. The commission alleged that Valeant’s 2015 acquisition of Paragon eliminated competition between the two companies for the sale of FDA-approved discs for three types of gas permeable lenses. FTC also alleged that following the acquisition, Valeant used its market power to increase price, reduce volume discounts, decrease innovation, and reduce product distribution options in each disc market.
The order requires Valeant to sell Paragon in its entirety to a newly created entity, Paragon Companies, which also would acquire the assets of Pelican Products, a contact lens packaging manufacturer that Valeant acquired after it bought Paragon. Pelican was the only producer of FDA-approved vials used to ship some finished gas permeable lenses.