Markets Wired

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Akorn Enterprises’ $640 million acquisition of Hi-Tech Pharmacal, Inc. was anticompetitive and would lead to higher prices for consumers in several current and future generic drug markets.

According to the FTC’s complaint, originally announced in April 2014, the acquisition as proposed would reduce competition in the markets for four generic medications, including eye drops and topical anesthetics, and would reduce future competition in the market for a generic ointment prescribed to treat bacterial eye infections.

The final order settling the FTC’s charges requires the parties to sell either Akorn’s or Hi-Tech’s rights and assets to each of the five drug products to Watson Laboratories, Inc., and required Akorn to assign Watson its contract for making a currently available branded and generic topical anesthetic cream within 10 days after the deal is completed.

The Commission vote approving the final order was 4-0-1, with Commissioner Terrell McSweeny not participating. (FTC File No. 131-0221; the staff contact is Lisa De Marchi Sleigh, Bureau of Competition, 202-326-2535)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust{at}ftc{dot}gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave., SW, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.