FTC signs off on Actavis-Warner Chilcott deal

FTC says Actavis and Warner Chilcott must sell rights to 4 drugs as part of $8.5B tie-up

Associated Press

NEW YORK (AP) -- Antitrust regulators are requiring drugmakers Actavis and Warner Chilcott to divest four products as a condition of approving the $8.5 billion combination of the two companies.

Actavis said it will sell generic versions of three oral contraceptives and Warner Chilcott's post-menopausal osteoporosis drug Atelvia to Amneal Pharmaceuticals. It did not disclose terms of the sale. The Federal Trade Commission said the move will preserve competition and help keep prices down.

The contraceptives are Femcon FE, Loestrin 24 FE, and Lo Loestrin FE. Actavis will also supply generic versions of Femcon FE and Loestrin 24 FE to Amneal for at least two years.

In May Actavis Inc. agreed to buy Warner Chilcott PLC for $8.5 billion, creating the third-largest specialty pharmaceutical company in the U.S. The deal will expand the women's health and urology business of Actavis and give it a range of dermatology and gastroenterology products. The company says it will have about $11 billion in annual revenue and will incorporate in Ireland, where Warner Chilcott is based. That could reduce its tax liabilities.

Shareholders of both companies approved the deal earlier this month.

Shares of Actavis rose $1.63 to $144.30, and Warner Chilcott shares picked up 27 cents to $23.11.

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