58 Annals of Health Law Vol. 25
It is difficult, if not impossible, to discern whether and how FTC scrutiny of these consolidations has shifted over the decades since enactment of the Hart-Scott-Rodino Act, or how scrutiny will play out in the future. However, one thing is certain: bio-pharma consolidation continues at a rapid pace.203 Post-2014, there have been many high-profile mergers and acquisitions in the bio-pharma space.204 For example, on March 2, 2015, Novartis and GlaxoSmithKline (“GSK”) struck a $28.5 billion deal in which Novartis acquired GSK’s oncology business and became GSK’s “preferred partner for the commercialisation [sic] of its oncology pipeline.”205 Novartis “transferred its vaccines division (excluding flu) to GSK.”206 The two companies also entered into a joint venture for over-the-counter (“OTC”) consumer products.207 In two additional deals, Actavis acquired Allergan for $70.5 billion, on March 17, 2015,208 and Bayer purchased Merck’s OTC business for $14.2 billion on October 1, 2014.209 The Valeant and Salix transaction in April 2015210 led to the controversial drug price increase for Isuprel (isoproterenol hydrochloride) and Nitropress (nitroprusside sodium).211 The beauty of a symposium article is that it can raise more questions than it answers. This article is no exception, and hopefully it fuels more targeted research into this realm. As an initial matter relating to the current connection being drawn between bio-pharma consolidation and drug price increases, it
203. Fraser Tennant, Biopharma M& A Expansion to Continue to 2016 Claims New Report, FINANCIER (Jan. 12, 2016), http://www.financierworldwide.com/fw-news/ 2016/1/12/biopharma-ma-expansion-to-continue-in-2016-claims-new-report. 204. See infra Table 3 for a non-exhaustive list of ten of the top reported mergers and acquisitions occurring after the time periods covered in the three FTC reports. Note that the FTC 2014 fiscal year captured October 1, 2013 to September 30, 2014. Table 3 begins with October 2014. 205. Miglierini, supra note 15. 206. Id. 207. Id. 208. Actavis Completes Allergan Acquisition, PR NEWSWIRE (Mar. 17, 2015, 8: 55 AM), http://www.prnewswire.com/news-releases/actavis-completes-allergan-acquisition- 300051633.html. Actavis subsequently changed its name to Allergan. See Neil Haggerty, Actavis Changes Name to Allergan After Deal for Botox Maker, WALL STREET. J. (June 15, 2015, 8: 19 AM), http://www.wsj.com/articles/actavis-changes-name-to-allergan-after-deal- for-botox-maker-1434370774. 209. Bayer Closes Acquisition of Consumer Care Business of Merck & Co., Inc., United States, For USD 14. 2 Billion, BAYER AG (Oct. 1, 2014), http://www.press.bayer.com/ baynews/baynews.nsf/id/EABBB3702F83BB71C1257D640043A0DA/$File/2014- 0328E.pdf?open&mod=05.01.2016_02:34: 34. 210. Valeant Pharmaceuticals International, Inc. Completes Acquisition of Salix Pharmaceuticals, PR NEWSWIRE (Apr. 1, 2015, 9:00 AM), http://www.prnewswire.com/news- releases/valeant-pharmaceuticals-international-inc-completes-acquisition-of-salix- pharmaceuticals-300059279.html. 211. Rockoff & Silverman, supra note 6 (stating that the list price of Isuprel had increased from $215.46 to $1,346.62 and the list price of Nitropress had increased from $257.80 to $805.61).