Multilateral Working Group on Pharmaceutical Mergers

Share

The Federal Trade Commission (FTC) says it is joining with the Justice Department, state attorneys general, the Canadian Competition Bureau, European Commission Directorate General for Competition, and the UK Competition and Markets Authority to form a working group to update their approach to analyzing the effects of pharmaceutical mergers. An FTC statement says the project taps expertise from competition authorities with whom the FTC cooperates frequently, as well as others with relevant experience, to ensure the most effective enforcement in this crucial market. The working group’s goal is to identify concrete and actionable steps to review and update the analysis of pharmaceutical mergers, FTC says.

The issues to be considered, it says, are: 

  •          how to expand and refresh current theories of harm;
  •          determining the full range of a pharmaceutical merger’s effect on innovation;
  •          how to consider in merger review pharmaceutical conduct such as price-fixing, reverse payments, and other regulatory abuses;
  •          the evidence needed to challenge a transaction based on any new or expanded theories of harm;
  •          the types of remedies that would work in the cases to which the new or expanded theories are applied; and
  • ·        what has been learned about the scope of assets and characteristics of firms that make successful divestiture buyers.

Read more