As a Condition of Acquiring Meda, FTC Requires Mylan to Sell Rights to Two Generic Drugs

To Preserve Competition, Companies Must Divest Generic Drugs for Treating Epilepsy, and Muscle Spasms and Stiffness

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Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Mylan Inc.’s $7.2 billion acquisition of Swedish drug maker Meda would likely be anticompetitive.

Under the FTC’s order, first announced in July 2016, the companies will be required to divest the U.S. rights to two generic drugs, 250 mg generic carisoprodol tablets, which treat muscle spasms and stiffness, and 400 mg and 600 mg generic felbamate tablets, which treat refractory epilepsy.

The FTC sought the drug divestments on the grounds that the acquisition would likely have otherwise led consumers to pay higher prices, and that it would also have eliminated competition between Mylan and Meda in the markets for both drugs.

Under the proposed order, the U.S.-based generic pharmaceutical company Alvogen Pharma US, Inc. will acquire all of Mylan’s rights and assets related to 400 mg and 600 mg felbamate tablets. The order also requires Mylan to relinquish its U.S. marketing rights for 250 mg generic carisoprodol tablets. With the settlement, Indicus Pharma LLC, which owns the product, will reacquire the rights and be able to enter into an agreement with a new marketing partner.

The Commission vote approving the final order was 3-0. (FTC File No. 161-0102; the staff contact is Christina Perez, Bureau of Competition, 202-326-2048.)

The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and resources.

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MEDIA CONTACT:
Betsy Lordan
Office of Public Affairs
202-326-3707