Abbvie and Allergan agreed to divest the EPI drugs Zenpep and Viokace as well as Brazikumab, an investigational IL-23 inhibitor in development for autoimmune diseases, to Nestle SA.
In addition, Nestle will also acquire Viokase, another pancreatic enzyme preparation, as part of the deal.
FTC Commissioner Chopra says majority decision approving the deal is “risky and concerning”
FTC Commissioner Rohit Chopra, a Democrat, released a statement criticizing the majority’s decision ordering AbbVie and Allergan to divest drug assets to Nestle as “risky and concerning.” He noted that Nestle is a company that does not offer prescription drugs.
Chopra wrote, “For the first time, the FTC is proposing a pharmaceutical merger settlement that divests a prescription drug business to a buyer that isn’t a drug company. The settlement requires Allergan to divest drugs used to treat patients with pancreatic cancer, cystic fibrosis, and other serious pancreatic disorders. The Commission is putting its full faith in Nestlé (SIX: NESN), the maker of KitKats and Tidy Cats, to take Allergan’s place in the market. The Commission is confident it can restore competition by divesting essential medicine to a company whose core business is selling packaged consumer products like candy and cat litter.”
