Lupin Ltd will divest two generic drugs sold by Gavis Pharmaceuticals LLC to clear antitrust hurdles related to its $880 million acquisition of the company, the U.S. Federal Trade Commission said on Friday.
The two drugs, used to treat bacterial infections and ulcerative colitis, will be sold to New Jersey-based generic drugmaker G&W Laboratories, the FTC said. (1.usa.gov/1QOj0su)
Lupin, India's third-largest drugmaker by sales, last year said it would buy Gavis to revive flagging growth in the United States by giving it access to a number of generic drugs that treat niche diseases.
If not for this divestiture, the takeover would have combined two of four companies that currently market a generic version of doxycycline monohydrate, an antibacterial treatment, in two doses, likely resulting in higher prices, the FTC said.
The merger would have also eliminated one of the few firms likely to enter the market to make generic versions of long-acting mesalamine, used to treat ulcerative colitis, the agency added.
FTC requires Lupin to transfer all of Gavis's rights and assets related to the antibacterial drug to G&W 10 days after the completion of the acquisition. The Indian drugmaker will also supply G&W with the finished product for two years until the transfer of Gavis' manufacturing technology is completed.
Gavis must also offload rights and assets related to the ulcerative colitis drug to G&W before the deal is closed, FTC said.
(Reporting by Natalie Grover in Bengaluru; Editing by Anil D'Silva)
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Updated Date: Feb 19, 2016 23:45:12 IST