Federal Trade Commission clearance of Watson's $1.9 bil. acquisition of Andrx is contingent upon Andrx divesting the development and marketing rights for generic extended-release glipizide to Actavis under a proposed consent decree announced Oct. 31.

According to FTC, without the divestiture, the deal would have resulted in an anticompetitive environment in which only two companies were selling the generic version of Pfizer's type 2 diabetes drug Glucotrol XL , and in which Watson would have an 80% share of the market. Watson currently is the market leader, with a 45% share, followed by Andrx (35%) and Pfizer's Greenstone division (20%).

The proposed consent decrees also require Watson to return marketing rights for the generic version of Abbott's pain management drug Vicoprofen (hydrocodone bitartate/ibuprofen) back to Interpharm.

One of the FTC requirements for clearance had already been agreed upon in March by Watson and Andrx under terms of the acquisition; Andrx will divest certain rights and assets related to 11 oral contraceptive products, including generic versions of Johnson & Johnson's Ortho-Cyclen and Ortho Tri-Cyclen (¹ Also see "Andrx Divests Oral Contraceptive ANDAs To Teva" - Pink Sheet, 17 March, 2006.).

The FTC consent decree is the second in the past week involving generic manufacturers; Barr will be required to divest generic drugs for the treatment of depression, high blood pressure and ruptured blood vessels, as well as a branded organ preservation solution, to receive FTC clearance of its Pliva acquisition (² Also see "FTC Clears Barr’s Acquisition Of Pliva Based On Divestiture Of Generic Drugs" - Pink Sheet, 23 October, 2006.).

Actavis, which is expected to acquire Andrx' extended-release glipizide, had also been pursuing Pliva.

"This order again makes it clear that the FTC is committed to protecting consumers from deals that would otherwise be likely to lead to higher generic drug prices," FTC Bureau of Competition Director Jeffrey Schmidt said in a release.

- Brooke McManus (b.mcmanus@elsevier.com)

FTC Clearance Of Watson’s Andrx Acquisition Requires 13 Generic Divestitures

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