AAI Letter to the FTC Says Generic Pharmaceutical Merger of Teva and Allergan Will Eliminate Important Competition

In a letter to the Federal Trade Commission (FTC), the AAI today outlined the competitive concerns raised by the proposed merger of generic pharmaceutical makers Teva and Allergan. The letter was written by AAI Advisor Bill Comanor, Professor, Department of Economics, University of California, Santa Barbara and Professor, Department of Health Policy and Management, University of California, Los Angeles, and AAI President Diana Moss

The AAI letter, based on publicly available information, evaluates the likely competitive effects of the proposed merger of Teva and Allergan and its implications for consumer welfare. Potentially adverse effects could be large since generic sellers introduce a critical measure of competition into pharmaceutical markets and play an important competitive role in making prescription drugs affordable. Any limitation or diminution of the competitive influence of generic pharmaceutical firms could therefore have substantial adverse consequences. Moreover, crafting relief that will adequately protect consumer interests is inherently difficult.

Media Contacts:

Diana Moss
202-5362-0324
dmoss@antitrustinstitute.org

William S. Comanor
323-376-3024
comanor@econ.ucsb.edu