The Federal Trade Commission (“FTC”) approved the acquisition of Celgene Corporation by Bristol-Meyers Squibb Company (“BMS”) on the condition of the divestiture of Celgene Corporation-owned Otezla, the popular oral treatment drug for psoriasis in the United States. This proposed divestiture would be the largest ever requested by the FTC or the U.S. Department of justice as an acquisition requirement.
BMS, based in U.S.A, is a global biopharmaceutical company whose mission is to discover, develop and
deliver innovative medicines that help patients prevail over serious diseases. Celgene Corporation, is an American biotechnology company that discovers, develops and commercializes medicines for cancer and inflammatory disorders. It is incorporated in Delaware and headquartered in Summit, New Jersey.
FTC raised the competition concern that the acquisition would substantially lessen competition and create a monopoly by eliminating future competition between BMS and Celgene in developing, manufacturing and selling oral products to treat psoriasis in the United States. Drug development and FDA approval of new competitors would be lengthy. As a result, entry into this market would not be sufficient to address anticompetitive effects of the acquisition.
The parties agreed to divest Otezla business to Amgen Inc. no later than 10 days after the completion of the acquisition. Amgen is a a California-based pharmaceutical and biological company, believed to recover the competition lost due to the proposed acquisition.