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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 firstname.lastname@example.org
(END) Dow Jones Newswires
November 15, 2019 17:24 ET (22:24 GMT)
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