FTC Requires Bristol-Meyers Squibb, Celgene to Divest Otezla as Condition of Acquisition
November 15 2019 - 5:39PM
Dow Jones News
By Stephen Nakrosis
The U.S. Federal Trade Commission said Friday Celgene Corp.
(CELG) agreed to divest its Otezla psoriasis treatment as a
condition of the company's planned acquisition by Bristol-Myers
Squibb Co. (BMY).
The FTC said "The proposed divestiture is the largest that the
FTC or the U.S. Department of Justice has ever required in a merger
enforcement matter."
According to the FTC, the companies agreed to divest Otezla for
$13.4 billion. The companies plan to divest Otezla's worldwide
business, which includes regulatory approvals, intellectual
property, contracts, and inventory, to Amgen Inc. (AMGN) no later
than 10 days after the completion of the proposed acquisition, the
FTC said.
The FTC said a Bristol-Myers pipeline product, like Otezla, an
oral treatment for moderate-to-severe psoriasis, would likely be
the next entrant into that market and would be in direct
competition with otzela.
Bristol-Myers Squibb said it expects the Celgene deal will close
on November 20.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
November 15, 2019 17:24 ET (22:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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