Markets Wired

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that Mylan, Inc.’s acquisition of Agila Specialties Global Pte. Ltd and Agila Specialties Pvt. Ltd. (collectively, Agila) from Strides Arcolab Ltd. was anticompetitive in 11 injectable generic drug markets.  The FTC’s order, first announced in September, requires Mylan and Agila to remedy the proposed competitive concerns in each of these drug markets, as described in the press release announcing the proposed settlement.  No comments were received during the public comment period.

According to the FTC’s complaint, in each of the markets, Mylan and Agila were two of only a limited number of current or likely future competitors. The number of suppliers in generic pharmaceutical markets matters because prices generally decrease as the number of competing generic suppliers increases. In addition, the injectable generic products subject to the final order are highly susceptible to supply disruptions caused by the inherent difficulties of producing sterile liquid drugs. The complaint alleged that by reducing the number of competitors in these markets, the acquisition as originally proposed would eliminate important competition and likely lead to higher prices.

The Commission vote approving the final order was 4-0. (FTC File No. 131-0112; the staff contact is Amy Posner, Bureau of Competition, 202-326-2614)

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, 601 New Jersey Ave., Room 7117, Washington, DC 20001. 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.