The U.S. Court of Appeals for the Eigth Circuit rejects the FTC’s attempt to identify a relevant product market in a pharmaceuticals related merger (Lundbeck)

FTC v. Lundbeck: Why, God, Why?* What really has the world come to when a merger to monopoly followed by a 1300% price increase survives Section 7 challenge? That, sadly, seems to be the final result in Federal Trade Commission v. Lundbeck, which the Eighth Circuit affirmed last Friday. There the maker of one drug to treat a heart defect in premature babies acquired the only other such drug in existence, and then drastically raised the price of both. The Commission brought what one might be forgiven to have thought was a slam dunk legal challenge, but instead lost by bench verdict. The case seems now pretty irrevocably to have been styled a “fact” case—the Eighth Circuit decided it that way, and it seems quite doubtful that its view will be disturbed. One accordingly presumes that

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  • Cleveland University - Marshall School of Law

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Christopher Sagers, The U.S. Court of Appeals for the Eigth Circuit rejects the FTC’s attempt to identify a relevant product market in a pharmaceuticals related merger (Lundbeck), 19 August 2011, e-Competitions August 2011, Art. N° 38376

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