To preserve competition within the drug market, the Federal Trade Commission ordered Teva Pharmaceuticals to divest 79 drug products before acquiring Allergan's generic pharmaceutical business, representing the largest drug divestiture order in an FTC pharmaceutical merger case.
Israel-based Teva, the largest generic drug producer in the world, agreed to sell the rights and assets of 79 generic drug products to 11 different drug firms. The divested drugs include anesthetics, antibiotics, weight loss drugs, oral contraceptives and treatments for a variety of diseases.
By satisfying the FTC's regulatory approval requirements, Teva can now acquire Actavis Pharmaceuticals from Parsippany, N.J.-based Allergan — the third biggest generic drugmaker in the U.S. — for $40.5 million.
Once the acquisition is complete, Teva will have about 338 product registrations and 115 new products pending approval from the Food and Drug Administration.
The deal is expected to close this week.
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