The US FTC places a price cap on an undertaking’s intra-company transfer price as a condition precedent to clearing a merger in the pharmaceutical sector (Fresenius / Daiichi)

On September 15, 2008, the FTC announced that it challenged a manufacturing, distribution, and supply agreement between Fresenius Medical Care Ag & Co. KGaA (Fresenius) and Daiichi Sankyo Company, Ltd. (“Daiichi”) based on allegations that the proposed transaction would violate U.S. federal antitrust laws in the market for the manufacture, distribution, and sale of intravenously-administered iron sucrose. The FTC alleged that the agreement would provide Fresenius with incentives to increase its intra- company transfer price for the drug Venofer, thereby increasing reimbursement rates paid by the Center for Medicare & Medicaid Services (“CMS”) to dialysis clinics in the U.S. To settle its charges, the FTC

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  • Weil, Gotshal & Manges (Washington)

Quotation

Jeff L. White, The US FTC places a price cap on an undertaking’s intra-company transfer price as a condition precedent to clearing a merger in the pharmaceutical sector (Fresenius / Daiichi), 20 October 2008, e-Competitions October 2008, Art. N° 53247

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