Mylan battles against Teva takeover: US consumer groups oppose merger

The groups told the US FTC: Increased consolidation has already led to higher prices and to generic drug shortages.

TEVA ,   EREZ VIGODMAN Robert-J-Coury-1 Mylan 320X=p

“A takeover of Mylan by Teva is a bad deal for consumers, ” claim. US consumer organizations that have jointly written to the Federal Trade Commission (FTC) demanding that it block the Teva-Mylan deal.
Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) has bid over $40 billion to buy generic pharmaceutical rival Mylan N.V. However, Mylan opposes the merger.In the letter to FTC chair Edith Ramirez, the consumer organizations write about their growing concerns that the generic pharmaceuticals business is becoming more consolidated and add that the acquisition of Mylan by Teva would bring together the two largest manufacturers of generic drugs in the US.The organizations wrote:

Today, consumer advocacy groups including Consumers Union, Consumer Federation of America, US PIRG, Consumer Action, Consumer Watchdog, Public Citizen, and National Center for Health Research joined together to call on the Federal Trade Commission (FTC) to block Teva Pharmaceuticals’ hostile bid to acquire Mylan. If allowed to occur, the takeover would combine the top two largest generic drug companies, creating a behemoth that could dominate the generic pharmaceutical industry. Such a merger would run counter to public interest and could: increase generic and specialty drug prices, exacerbate generic drug shortages, and reduce the competitive drive within the industry to develop new generic drugs. The consumer groups have sent a joint letter to the FTC that details their concerns. The letter can be found here.

“Teva’s takeover of Mylan is a bad deal for consumers, ” said Lisa Swirsky of Consumers Union. “The generic pharmaceutical industry has already seen marked consolidation over the past several years. If these two companies are now allowed to merge, consumers are going to face even higher costs and further reduced access to life-saving drugs.””We are concerned that Teva’s takeover of Mylan would dramatically alter the generic drug marketplace. The extensive harms to competition and consumers can’t be stopped by divesting a specific lines of generic drugs. We see no path forward that would make this merger okay, ” said

Linda Sherry of Consumer Action.

The letter explained that the merger would harm consumers in at least three ways:

1) Increases in Generic and Specialty Drug Prices: From July 2013 to July 2014, more than half of all retail generic drugs experienced price increases, with generic manufacturer consolidation playing a significant role in the increased prices. If the merger is approved, that would only get worse. The combined entity would have more than double the market share of the next-largest generic manufacturer. Promoting low prices on generic and specialty drugs is of critical importance to consumers to encourage treatment adherence and patient recovery rates.

2) Increases in Drug Shortages: Consolidation within the drug manufacturing industry leads to fewer production facilities and manufacturing lines to produce needed drugs. Of the 70 drugs that the FDA lists in short supply, three are made by both Mylan and Teva, while five other drugs are produced solely by Teva and four additional drugs are produced solely by Mylan. Along with exacerbating current drug shortages, a merger between the two largest generic manufacturers will likely eliminate more manufacturing facilities, leading to reduced production and creating shortages for other generic and specialty drugs.

“Teva’s hostile bid presents a disastrous scenario for consumers and the entire generic drug industry, ” said Jesse Ellis O’Brien on behalf of US PIRG. “Generic drugs are responsible for more than $1.5 trillion in savings since 2004. Now, more than ever, we need a robust and competitive generic drug marketplace that allows consumers to achieve savings and adds stability to our nation’s healthcare system.”

 

READ MORE:

TEVA ,   EREZ VIGODMAN Robert-J-Coury-1 Mylan 320X=p

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA),

the Israeli drugmaker, is preparing to improved proposal for US rival

Mylan to as much as $43 billion, $86 to $88 a share, as soon as this week,

Financial More…

Erez Vigodman- TEVA

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA)

CEO Erez Vigodman said today, “If the Mylan Pharmaceuticals shareholders

support the acquisition of Perrigo, Teva will abandon its More…

TEVA ,   EREZ VIGODMAN Robert-J-Coury-1 Mylan 320X=p

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) has completed

first step to buy its rival Mylan N.V. (Nasdaq: MYL). The Israeli giant announced

on Friday that it has completed the purchase of a 4.61% More…

TEVA ,   EREZ VIGODMAN Robert-J-Coury-1 Mylan 320X=p

Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) continues

to accumulate shares in takeover target Mylan (MYL), even as Mylan’s largest

shareholder, Abbott Labs (NYSE: ABT), announced its More…

(L-R) Robert J Coury,   Mylan and Josegh Papa,   Periggo

One of the main worries of Tel Aviv Stock Exchange (TASE) leaders

recently has been the expected delisting of Perrigo Company (NYSE:PRGO; TASE:PRGO),

if and when the company’s acquisition by Mylan More…

TEVA ,   EREZ VIGODMAN Robert-J-Coury-1 Mylan 320X=p

Abbott Laboratories (NYSE: ABT), said it would back the

generic pharmaceutical company Mylan’s (MYL) $34 billion bid acquisition of

Perrigo Co Plc (PRGO.N). Abbott Lab potentially helping Mylan forfend $40 More…

Read more about: , , , , , , , , ,

Wordpress site Developed by Fixing WordPress Problems