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Drugmaker Endo agrees to sell two drugs because of FTC antitrust concerns with $8B deal

The Federal Trade Commission said Friday that Endo International agreed to sell two generic drugs to satisfy regulators' antitrust concerns created by Endo's proposed $8 billion acquisition of Par Pharmaceutical.

The Federal Trade Commission said Friday that Endo International agreed to sell two generic drugs to satisfy regulators' antitrust concerns created by Endo's proposed $8 billion acquisition of Par Pharmaceutical.

The two drugs and facilities will be sold to Rising Pharmaceuticals in Allendale, N.J.

The FTC said the Endo-Par deal would combine the two most significant suppliers for generic glycopyrrolate tablets, which are used with other drugs to treat certain types of ulcers. Robinul, the brand-name version of glycopyrrolate, was made by the Japanese drugmaker Shionogi, whose U.S. operations are based in Florham Park, N.J.

Endo is based in Dublin, but its executives operate from Malvern. Par Pharmaceutical is based in Woodcliff, N.J. Rising is a subsidiary of ACETO Corp., which is based in Port Washington, N.Y.

The FTC also said Endo and Par are two of only four active suppliers of generic methimazole tablets, which are used to treat excess production of thyroid hormone. King Pharmaceuticals, now part of Pfizer, sold methimazole under the brand name Tapazole.

In the last few years, generic drug companies have used low interest rates and cash on their books to buy competitors. By reducing the field of competitors, companies are in better position to negotiate prices for drugs with pharmacy benefit managers, public and private insurers and patients.

Without the divestitures required by the proposed order, "the result would likely be higher prices for consumers," the FTC said in a statement.

Endo did not immediately respond to requests for comment about the FTC statement or information on the price of the divestiture deal with Rising.

However, Endo did issue a statement that said it received FTC notification that "all closing conditions relating to the Par acquisition have been satisfied and the parties will promptly proceed with the closing pursuant to the terms of the merger agreement."

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