Allergan Divests to Settle FTC Charges

On March 8th, Botox marketer Allergan, Inc., and Inamed Corporation agreed to divest the rights to develop and distribute Reloxin, a potential Botox rival, in order to settle Federal Trade Commission charges that Allergan’s $3.2 billion purchase of Inamed would violate federal antitrust laws. The FTC alleges that Allergan’s purchase of the expected first serious competitor to Botox likely would reduce competition and force consumers to pay higher prices for the botulinum toxin type A products used by millions of Americans to temporarily erase frown lines and wrinkles. Under the terms of the FTC settlement, the companies will return the development and distribution rights to Reloxin to Ipsen Ltd., its U.K.-based manufacturer.

Andre Barlow