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news.The US Federal Trade Commission has cleared the way for hospital products company Hospira to proceed with its proposed acquisition of Mayne Pharma, subject to the divestiture of certain overlapping products.
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The proposed acquisition is worth $2 billion and will boost Hospira’s place in generic injectable pharmaceuticals when it gains Mayne Pharma’s pipeline of products.
“Following the combination of our companies, we will be even better positioned to help reduce the overall costs of healthcare worldwide,” said Christopher Begley, CEO, Hospira.
The FTC endorsed the deal after the companies agreed to divest Mayne Pharma’s assets that are used to manufacture and supply five generic injectable drugs to Barr Pharmaceuticals. However, these assets must be sold within ten days of the merger.
Hospira has also entered into a three-year, $500 million term loan and a one-year bridge loan of just under $1.43 billion to fund the buyout of Mayne Pharma.
Hospira and Mayne expect that, subject to final court approvals and customary closing conditions, the transaction will be completed the first week of February.