The US FTC files a lawsuit to divest new drug acquisition (Ovation Pharmaceuticals)

In an untypical move, the Federal Trade Commission has filed a lawsuit against Ovation Pharmaceuticals to divest Ovation’s recent acquisition of new drug NeoProfen. At the time of the acquisition, NeoProfen was pending FDA approval and the dollar amounts for the transaction did not meet Hart Scott Rodino (HSR) thresholds for notification and merger review. According to the FTC complaint, Ovation had previously acquired Indocin, the only other treatment for PDA, a congenital heart disorder in premature newborns. The FTC claims that after the acquisition, Ovation raised the price of Indocin 1300% and set the price for NeoProfen at the same levels. The Commission is seeking divestiture and disgorgement. And two commissioners indicated they would seek to unwind both Ovation acquisitions.

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  • Sheppard Mullin (San Francisco)

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Michael Cohen, The US FTC files a lawsuit to divest new drug acquisition (Ovation Pharmaceuticals), 16 December 2008, e-Competitions December 2008, Art. N° 74788

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