FTC Requires Teva to Divest Over 75 Generic Drugs to Settle Competition Concerns Rel...
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`FTC Requires Teva to Divest Over 75
`Generic Drugs to Settle Competition
`Concerns Related to its Acquisition of
`Allergan’s Generic Business
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`Settlement Preserves Competition and Marks Largest Drug
`Divestiture Order in a Pharmaceutical Merger Case
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`FOR RELEASE
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`July 27, 2016
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`TAGS:
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`Bureau of Competition Competition
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`Teva Pharmaceutical Industries Ltd. has agreed to sell the rights and assets related to 79 pharmaceutical
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`products to settle FTC charges that its proposed $40.5 billion acquisition of Allergan plc’s generic
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`pharmaceutical business would be anticompetitive. The remedy requires Teva to divest the drug portfolio to
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`eleven firms, and marks the largest drug divestiture order in an FTC pharmaceutical merger case.
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`The FTC order will preserve competition in U.S. pharmaceutical markets where Teva and Allergan compete
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`now or would likely have competed in the future if not for the merger. The divested products include
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`anesthetics, antibiotics, weight loss drugs, oral contraceptives, and treatments for a wide variety of diseases
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`and conditions, including ADHD, allergies, arthritis, cancers, diabetes, high blood pressure, high cholesterol,
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`mental illnesses, opioid dependence, pain, Parkinson’s disease, and respiratory, skin and sleep disorders.
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`“Millions of Americans rely daily on generic drugs to treat a wide range of illnesses,” said Debbie Feinstein,
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`Director of the FTC’s Bureau of Competition. “The FTC’s settlement safeguards the competitive availability of
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`these medications for patients across the country who depend on them.”
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`As explained in its Statement, the Commission also evaluated whether this transaction would have
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`anticompetitive effects beyond those occurring in individual product markets, but concluded that the evidence
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`showed it was unlikely to do so. Specifically, the Commission considered whether the transaction would lower
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`incentives to develop or bring new generic drugs to market, as well as whether the combined company’s ability
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`to bundle products could have an anticompetitive effect.
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`The acquirers of the divested products are Mayne Pharma Group Ltd., Impax Laboratories, Inc., Dr. Reddy’s
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`Laboratories Ltd., Sagent Pharmaceuticals, Inc., Cipla Limited, Zydus Worldwide DMCC, Mikah Pharma LLC,
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`Perrigo Pharma International D.A.C., Aurobindo Pharma USA, Inc., Prasco LLC and 3M Company.
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`https://www.ftc.gov/news-events/press-releases/2016/07/ftc-requires-teva-divest-over-75-g...
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`8/16/2016
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`DRL - EXHIBIT 1050
`DRL001
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`

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`FTC Requires Teva to Divest Over 75 Generic Drugs to Settle Competition Concerns Rel...
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`Page 2 of 3
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`Teva and Allergan must divest the drug products no later than 10 days after the acquisition is complete, and to
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`help ensure that the order achieves its remedial goals, they are required to provide technical assistance and
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`other transitional services to ensure that the acquirers can independently manufacture and sell the divested
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`products. The FTC order includes an asset maintenance order and enables the Commission to appoint two
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`interim monitors.
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`In addition to the product divestitures, to address the anticompetitive effects likely to arise in markets for 15
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`pharmaceutical products where Teva supplies active pharmaceutical ingredients to current or future Allergan
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`competitors, the FTC order additionally requires Teva to offer these existing API customers the option of
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`entering into long-term API supply contracts. This option ensures that these customers have access to
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`essential API inputs and provides them sufficient time to qualify alternative suppliers if they choose to do so.
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`Further details about the complaint and the proposed consent order are set forth in the analysis to aid public
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`comment for this matter.
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`Israel-based Teva, a global manufacturer of generic and branded pharmaceuticals, is the largest generic
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`pharmaceutical producer in the world. Allergan is also a global producer of generic, branded and over-the-
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`counter pharmaceuticals, and the third largest generic in the U.S.
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`Commission staff and the staff of antitrust agencies in the European Union, Canada, Israel, and Mexico
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`worked cooperatively on this investigation.
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`The Commission votes to issue the complaint and accept the proposed consent order for public comment, and
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`to approve the Commission Statement were both 3-0. The FTC will publish the consent agreement package in
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`the Federal Register shortly. The agreement will be subject to public comment for 30 days, beginning today
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`and continuing through August 29, 2016, after which the Commission will decide whether to make the
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`proposed consent order final. Comments can be filed electronically or in paper form by following the
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`instructions in the “Supplementary Information” section of the Federal Register notice.
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`NOTE: The Commission issues an administrative complaint when it has “reason to believe” that the law has
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`been or is being violated, and it appears to the Commission that a proceeding is in the public interest. When
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`the Commission issues a consent order on a final basis, it carries the force of law with respect to future
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`actions. Each violation of such an order may result in a civil penalty of up to $40,000 per day.
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`The Federal Trade Commission works to promote competition, and protect and educate consumers. You can
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`learn more about how competition benefits consumers or file an antitrust complaint. Like the FTC on
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`Facebook, follow us on Twitter, read our blogs and subscribe to press releases for the latest FTC news and
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`resources.
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`Contact Information
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`MEDIA CONTACT:
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`Betsy Lordan
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`Office of Public Affairs
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`202-326-3707
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`STAFF CONTACT:
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`Michael Moiseyev
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`https://www.ftc.gov/news-events/press-releases/2016/07/ftc-requires-teva-divest-over-75-g...
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`8/16/2016
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`DRL - EXHIBIT 1050
`DRL002
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`

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`FTC Requires Teva to Divest Over 75 Generic Drugs to Settle Competition Concerns Rel...
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`Page 3 of 3
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`Bureau of Competition
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`202-326-3106
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`https://www.ftc.gov/news-events/press-releases/2016/07/ftc-requires-teva-divest-over-75-g...
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`8/16/2016
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`DRL - EXHIBIT 1050
`DRL003