Policy and Regulatory Report recently published an article on the Merck and Cubist Pharmaceuticals merger deal which is expected to close in the first quarter of 2015 pending a review by the Federal Trade Commission. Buchanan Ingersoll & Rooney Shareholder Edward John Allera and Associate Carrie G. Amezcua offered insights to the publication on potential antitrust issues since both companies make antibiotics.

Both Allera and Amezcua do not anticipate competition issues with the pending transaction. Amezcua said, there “doesn’t seem to be a large overlap. And there are also other drug companies that have antibiotics.”

She went on to explain that regulators will look at each company’s antibiotics, how they are primarily used, if other antibiotics can be used for the same diseases and what products will become available in the near future. She concludes that it’s unlikely the agency will end up issuing a “second request” to the companies for more information.

Allera adds that certain drug-resistant organisms have become a serious public health concern which has prompted Merck’s interest in purchasing Cubist. He said, “it would be a surprise to me if there were a problem [with the merger].” 

This article “Cubist/Merck Deal Not Seen Raising Antitrust Issues” appeared in PaRR, a subscription-only service.