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Valeant Pharmaceuticals International, Inc., In the Matter of

Valeant Pharmaceuticals, the parent of Bausch + Lomb, agreed to sell Paragon Holdings I, Inc. to settle charges that its May 2015 acquisition of Paragon reduced competition for the sale of FDA-approved buttons used for three types of gas permeable, or GP, lenses: orthokeratology lenses, worn to reshape the cornea; large-diameter scleral lenses, which cover the white of the eye and are used after eye surgery, for corneal transplants, and to treat eye disease; and general vision correction lenses. Valeant will sell Paragon in its entirety to a newly created entity, Paragon Companies LLC, headed by the former president of Paragon, Joe Sicari. Under the settlement, Paragon Companies also will acquire the assets of Pelican Products LLC – a contact lens packaging company that Valeant acquired after its purchase of Paragon – that is the only producer of FDA-approved vials used for shipping some GP lenses.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
151 0236
161 0028

CentraCare Health System, In the Matter of

The FTC's order requires CentraCare Health, a healthcare provider in St. Cloud, Minnesota, to release some physicians from “non-compete†contract clauses, allowing them to join competing practices, under a settlement mitigating likely anticompetitive effects from CentraCare’s proposed merger with St. Cloud Medical Group (“SCMGâ€). CentraCare Health, a non-profit health system in central Minnesota, also includes a multi-specialty physician practice group. SCMG is a physician-owned, multi-specialty practice group that operates four clinics in and around St. Cloud. According to the FTC, CentraCare’s planned acquisition of SCMG would combine the two largest providers of adult primary care, pediatric, and OB/GYN services in the St. Cloud area. By eliminating SCMG as a potential alternative in the St. Cloud area, the acquisition would likely increase CentraCare’s bargaining power vis-à-vis commercial health plans, allowing it to raise reimbursement rates and secure more favorable terms, the complaint states. However, SCMG was failing financially, and a number of physicians had already left the practice. SCMG’s multi-year search did not identify an alternative purchaser to CentraCare for the entire group, but at least one local provider has expressed interest in expanding its practice by hiring some of SCMG’s physicians. The consent order permitted the acquisition to proceed, but lessened its potential anticompetitive effects by requiring CentraCare to allow a number of adult primary care, pediatric, and OB/GYN physicians to leave the health system and work for other local providers or establish a new practice in the area and to provide certain financial incentives to a number of departing physicians.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
161 0096
Docket Number
C-4594

Amphastar Pharmaceuticals, Inc., et al. v. Momenta Pharmaceuticals, Inc., et al.

Date
Citation Number
16-2113
Â鶹´«Ã½ Court
U.S. Circuit Court of Appeals for the First Circuit
Brief of the Â鶹´«Ã½ Trade Commission as amicus curiae, taking no position on the merits of the case, but explaining that the district court erroneously dismissed the complaint on Noerr-Pennington...

The Penn State Hershey Medical Center/PinnacleHealth System, In the Matter of

The Commission issued an administrative complaint alleging that the combination of Penn State Hershey Medical Center and PinnacleHealth System would substantially reduce competition for general acute care inpatient hospital services in the area surrounding Harrisburg, Pennsylvania, and lead to reduced quality and higher health care costs for the area’s employers and residents.  The Commission also authorized staff to file a preliminary injunction to maintain the status quo pending the outcome of its administrative proceeding.

Type of Action
Administrative
Last Updated
FTC Matter/File Number
141 0191
Docket Number
9368