Sun-Ranbaxy deal gets FTC nod

Sun-Ranbaxy deal gets FTC nod

Ranbaxy assets for a generic ordered sold to Torrent

Sun-Ranbaxy deal gets FTC nod

Sun Pharmaceuticals has won approval from the Federal Trade Commission (FTC) of the US to acquire Ranbaxy on condition that it sells its interest in generic minocycline tablets.

Generic minocycline tablets are used to treat a wide array of bacterial infections, including pneumonia, acne, and urinary tract infections.

Under the proposed settlement, Ranbaxy’s generic minocycline capsule assets would be acquired by Torrent Pharmaceuticals that markets generic drugs in the US. In addition, Sun and Ranbaxy must supply generic minocycline tablets and capsules to Torrent until the company establishes its own manufacturing infrastructure.

Sun Pharma, Ranbaxy, and Torrent are leading pharmaceutical companies based in India. FTC has appointed an interim monitor to ensure that Torrent receives the support it needs from Sun and Ranbaxy during the divestiture process.

According to the FTC's complaint, the proposed merger would likely harm future competition by reducing the number of suppliers in the US market for three dosage strengths (50 mg, 75 mg, and 100 mg) of generic minocycline tablets. Ranbaxy is currently one of three suppliers of the products, while Sun is likely to sell generic minocycline tablets in the US soon. Sun's entry likely would have resulted in significantly lower prices for these drugs.

Last December, the Competition Commission of India (CCI) had ordered Ranbaxy to divest six products and Sun Pharma to sell one while giving its clearance to the mega deal. The Indian watchdog had directed Sun Pharma to divest all products containing tamsulosin and tolterodine which are, at present, marketed under the brand name Tamlet. Ranbaxy was asked to sell all products containing leuprorelin, which are marketed under the brand name Eligard.

The company would also have to divest the brands Terlibax, Rosuvas EZ, Olanex F, Raciper L, and Triolvance.

Dilip Shanghvi's Sun Pharma had decided to acquire Ranbaxy from its current owners Daiichi Sankyo for around $3.2 billion.