Authorities approve Watson’s Andrx acquisition

The deal has been authorized on the basis of certain conditions. Watson and Andrx have agreed to a consent order to address concerns about the takeover and to protect consumers from higher prices for drugs.

The two companies have agreed to end Watson’s marketing agreement with Interpham Holdings and return all rights necessary to market generic hydrocodone bitartate (ibuprofen tablets) back to Interpham.

Andrx must assign and divest its right to develop, make, and market generic extended release glipizide tablets to Actavis Elizabeth. It must also sell rights and assets needed to develop and market eleven generic oral contraceptive products to Teva Pharmaceutical Industries.

The original complaint stated that the transaction as proposed would have reduced the number of competing generic drug suppliers. The number of generic suppliers has a direct and substantial effect on generic pricing, as each new generic supplier can have a competitive impact on the market.

“The commission has taken a strong step to protect competition and consumers in markets for important generic drugs,” said Jeffrey Schmidt, director of the FTC’s Bureau of Competition.