Antitrust Trends in Technology, Life Sciences, and Healthcare

The FTC abandoned its pursuit of a novel theory and settled its Amgen/Horizon lawsuit 10 days before the scheduled preliminary injunction hearing. The FTC continues to explore other novel theories in its ongoing investigation of the Pfizer/Seagen transaction. The FTC remains concerned with “killer acquisitions” — transactions where Big Pharma with a commercial or late-stage asset acquire a clinical- or preclinical-stage asset allegedly with the purpose of eliminating or avoiding future competition. A new trade group formed that is specifically focused on the FTC’s life science antitrust enforcement.

Private equity roll-up and serial acquisition practices are under heightened scrutiny as the FTC backed up its recent rhetoric by challenging Welsh Carson’s roll-up of anesthesia practices in Texas. California published draft regulations outlining pre-notification requirements for healthcare transactions that will require additional information and extend closing timelines. These regulations specifically reference private equity roll-up transactions and appear to be part of an ongoing effort, in line with the FTC’s actions, to scrutinize private equity firms’ activity in the healthcare space.