The US FTC announced the condition this weekend, explaining that Sun’s proposed takeover of Ranbaxy would have been anticompetitive and effectively prevented other generic drugmakers from entering the US acne drug sector.
The Commission said: “Sun is one of only a limited number of firms likely to enter the generic minocycline tablets markets in the near future. Sun’s acquisition of Ranbaxy would therefore deprive consumers of the increased competition and likely price reductions that would have occurred as a result of Sun’s independent entry.”
Currently, only Ranbaxy, Dr Reddy’s and Par Pharmaceutical make the drug for the US and, according to the FTC, apart from Sun no other pharmaceutical firms look poised to join the market.
To address the anti-competitive concerns, the FTC wants Ranbaxy to sell its generic minocycline business to rival generics firm Torrent pharmaceuticals.
“The proposed Order also requires the parties to divest Ranbaxy’s generic minocycline hydrochloride 50 mg, 75 mg, and 100 mg capsules to Torrent to ensure that Torrent achieves regulatory approval to qualify a new API supplier for its minocycline tablets as quickly as Ranbaxy would have.
“Torrent will be able to establish the current API supplier of the minocycline capsules as the API supplier for its minocycline tablets through a less time-intensive regulatory process if Torrent controls both products and uses the same API supplier for both.
The Commission also wants Ranbaxy and Sun to manufacture the drug on Torrent’s behalf to allow the firm to “enter the markets while it validates its manufacturing process and seeks the necessary FDA approvals.”