Novartis AG, In the Matter of

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In the Matter of Novartis, AG
FTC Matter/File Number:

121 0144

Docket Number:

C-4364

Enforcement Type:

Part 2 Consents

Case Summary

On 7/16/2012, the FTC required drug supplier Novartis AG to give up its marketing rights to four topical skin care medications, under a proposed settlement resolving charges that Novartis' acquisition of pharmaceutical firm Fougera Holdings, Inc. would harm competition in the market for these topical drugs. The settlement order requires Novartis to end a marketing agreement that allows it to sell three topically-applied generic drugs and return all rights to a fourth generic drug in development to its manufacturer, Tolmar, Inc. According to the FTC's complaint, Novartis' acquisition of Fougera would violate Section 5 of the FTC Act and Section 7 of the Clayton Act by reducing competition in the generic drug markets for three skin care drugs: 1) generic calcipotriene topical solution, 2) generic lidocaine-prilocaine cream, and 3) generic metronidazole topical gel. The complaint also alleges that the acquisition would eliminate potential competition in the market for the sale of diclofenac sodium gel. On 9/5/2012, the FTC approved a final order settling charges that Novartis AG's proposed acquisition of Fougera Holdings, Inc. was anticompetitive in the markets for the marketing rights to four topical skin care medications. The final order resolving the charges preserves competition in the markets by requiring Novartis, a drug supplier, to end a marketing agreement that allows it to sell three of the products and return the rights to the fourth product to its manufacturer.