80_FR_52643 80 FR 52475 - Pfizer Inc. and Hospira, Inc.; Analysis of Proposed Consent Orders To Aid Public Comment

80 FR 52475 - Pfizer Inc. and Hospira, Inc.; Analysis of Proposed Consent Orders To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 80, Issue 168 (August 31, 2015)

Page Range52475-52478
FR Document2015-21513

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent orders-- embodied in the consent agreement--that would settle these allegations.

Federal Register, Volume 80 Issue 168 (Monday, August 31, 2015)
[Federal Register Volume 80, Number 168 (Monday, August 31, 2015)]
[Notices]
[Pages 52475-52478]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21513]


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FEDERAL TRADE COMMISSION

[File No. 151 0074]


Pfizer Inc. and Hospira, Inc.; Analysis of Proposed Consent 
Orders To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair methods of competition. 
The attached Analysis to Aid Public Comment describes both the 
allegations in the draft complaint and the terms of the consent 
orders-- embodied in the consent agreement--that would settle these 
allegations.

DATES: Comments must be received on or before September 23, 2015.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/pfizerhospiraconsent online or on paper, 
by following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Pfizer Hospira 
Consent, File No. 151 0074'' on your comment and file your comment 
online at https://ftcpublic.commentworks.com/ftc/pfizerhospiraconsent 
by following the instructions on the web-based form. If you prefer to 
file your comment on paper, write ``Pfizer Hospira Consent, File No. 
151 0074'' on your comment and on the envelope, and mail your comment 
to the following address: Federal Trade Commission, Office of the 
Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex D), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 
20024.

FOR FURTHER INFORMATION CONTACT: Kari A. Wallace, Bureau of 
Competition, (202-326-3085), 600 Pennsylvania Avenue NW., Washington, 
DC 20580.

[[Page 52476]]


SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent orders to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, have been 
placed on the public record for a period of thirty (30) days. The 
following Analysis to Aid Public Comment describes the terms of the 
consent agreement, and the allegations in the complaint. An electronic 
copy of the full text of the consent agreement package can be obtained 
from the FTC Home Page (for August 24, 2015), on the World Wide Web, at 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before September 23, 
2015. Write ``Pfizer Hospira Consent, File No. 151 0074'' on your 
comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/pfizerhospiraconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you file your comment on paper, write ``Pfizer Hospira Consent, 
File No. 151 0074'' on your comment and on the envelope, and mail your 
comment to the following address: Federal Trade Commission, Office of 
the Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex D), 
Washington, DC 20580, or deliver your comment to the following address: 
Federal Trade Commission, Office of the Secretary, Constitution Center, 
400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 
20024. If possible, submit your paper comment to the Commission by 
courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before September 23, 2015. For information on the 
Commission's privacy policy, including routine uses permitted by the 
Privacy Act, see http://www.ftc.gov/ftc/privacy.htm.

Analysis of Agreement Containing Consent Orders To Aid Public Comment

    The Federal Trade Commission (``Commission'') has accepted, subject 
to final approval, an Agreement Containing Consent Orders (``Consent 
Agreement'') from Pfizer Inc. (``Pfizer'') and Hospira, Inc. 
(``Hospira'') that is designed to remedy the anticompetitive effects 
resulting from Pfizer's acquisition of Hospira. Under the terms of the 
proposed Consent Agreement, the parties are required to divest all of 
Pfizer's rights and assets related to generic acetylcysteine inhalation 
solution and all Hospira's rights and assets related to clindamycin 
phosphate injection, voriconazole injection, and melphalan 
hydrochloride injection to Alvogen Group, Inc. (``Alvogen'').
    The proposed Consent Agreement has been placed on the public record 
for thirty days for receipt of comments from interested persons. 
Comments received during this period will become part of the public 
record. After thirty days, the Commission will again evaluate the 
proposed Consent Agreement, along with the comments received, to make a 
final decision as to whether it should withdraw from the proposed 
Consent Agreement or make final the Decision and Order (``Order'').
    Pursuant to an Agreement and Plan of Merger executed on February 5, 
2015, Pfizer proposes to acquire Hospira for approximately $16 billion 
(the ``Proposed Acquisition''). The Commission alleges in its Complaint 
that the Proposed Acquisition, if consummated, would violate Section 7 
of the Clayton Act, as amended, 15 U.S.C. 18, and Section 5 of the 
Federal Trade Commission Act, as amended, 15 U.S.C. 45, by lessening 
current competition in the markets for generic acetylcysteine 
inhalation solution and clindamycin phosphate injection and future 
competition in the markets for voriconazole injection and melphalan 
hydrochloride injection in the United States. The proposed Consent 
Agreement will remedy the alleged violations by preserving the 
competition that otherwise would be eliminated by the Proposed 
Acquisition.

I. The Products and Structure of the Markets

    The Proposed Acquisition would reduce the number of current 
suppliers in the markets for generic acetylcysteine inhalation solution 
and clindamycin phosphate injection, and reduce the number of future 
suppliers in the markets for voriconazole injection and melphalan 
hydrochloride injection.
    Generic acetylcysteine inhalation solution is a mucolytic therapy 
used to treat certain respiratory disorders. Acetylcysteine liquefies 
mucus in the lungs, which then can be coughed or suctioned out. 
Patients inhale the solution through a nebulizer mask, facemask, 
mouthpiece, tent, or intermittent positive pressure-breathing machine. 
Only three companies--Fresenius Kabi, partnered with Gland Pharma Ltd. 
and Pfizer; Hospira; and

[[Page 52477]]

American Regent, Inc.--supply generic acetylcysteine inhalation 
solution in the United States. The branded version of this product, 
Mucomyst, is no longer available. Fresenius/Gland/Pfizer is the market 
leader with an approximately 69% share and Hospira has an approximately 
22% share.
    Clindamycin phosphate injection is an antibiotic used to treat 
lung, skin, blood, bone, joint, and gynecological infections in 
hospitals. Currently, only four companies supply the product in the 
United States: Pfizer, Hospira, Sagent Pharmaceuticals, and Fresenius 
Kabi. While Pfizer's clindamycin phosphate product is a branded 
version, the price of Pfizer's product is competitive with the generic 
products. Customers, therefore, play the branded and the generic 
products against each other to negotiate prices. Pfizer and Hospira 
have a combined approximate market share of more than 80%.
    Voriconazole injection is an antifungal medication used to treat 
significant fungal infections in hospitals. Pfizer currently sells its 
Vfend brand voriconazole injection product priced competitively with 
the only generic version in the United States, which is offered by 
Sandoz. Hospira is one of a limited number of suppliers capable of 
entering the voriconazole injection market in the near future.
    Melphalan hydrochloride injection is a chemotherapy agent used to 
treat multiple myeloma and ovarian cancer. There are currently two 
melphalan hydrochloride injection products available in the United 
States: The branded version, which was originally developed and 
marketed by Glaxo Smith Kline and is now supplied by ApoPharma USA, 
Inc. (``ApoPharma''), and the generic version, sold by Mylan N.V. 
(``Mylan''). ApoPharma prices its branded version of the product 
competitively with the generic version offered by Mylan. Pfizer and 
Hospira are developing melphalan hydrochloride injection products, and 
are two of a limited number of suppliers capable of entering the market 
in the near future.

II. Entry

    Entry into the four markets described earlier would not be timely, 
likely, or sufficient in magnitude, character, and scope to deter or 
counteract the anticompetitive effects of the Proposed Acquisition. The 
combination of drug development times and regulatory requirements, 
including approval by the United States Food and Drug Administration 
(``FDA''), is costly and lengthy.

III. Effects

    In markets for pharmaceutical products used primarily in hospitals, 
like the products here, branded drug manufacturers are typically unable 
to command a premium price for their products because of the 
reimbursement structure for drugs administered in hospitals. Hospitals 
typically would not be reimbursed for using a premium-priced branded 
injectable product, when lower-priced therapeutically equivalent 
products are available. As a result, brand manufacturers of sterile 
injectable or inhalation products may lower their prices and compete 
directly with generic manufacturers' products. Customers tend to 
gravitate to the lowest-priced product, regardless of whether the drug 
was approved by the FDA as a brand or a generic product.
    Like true generic pharmaceutical markets, these multi-source 
pharmaceutical products generally are commodities, and prices often are 
inversely correlated with the number of competitors in each market. As 
the number of suppliers offering a therapeutically equivalent drug 
increases, the price for that drug decreases due to the direct 
competition between the existing suppliers and each additional 
supplier. The Proposed Acquisition would eliminate the current 
competition between two of the three competitors in the market for 
generic acetylcysteine inhalation solution, resulting in a duopoly and 
likely price increases. Similarly, in the market for clindamycin 
phosphate solution, the Proposed Acquisition would eliminate 
competition between two of only four current competitors, leading to 
higher prices.
    In addition, the Proposed Acquisition likely would cause 
significant anticompetitive harm to consumers by eliminating future 
competition that would otherwise have occurred if Pfizer and Hospira 
remained independent. The evidence shows that anticompetitive effects 
are likely to result from the Proposed Acquisition due to the 
elimination of an additional independent entrant in the currently 
concentrated markets for voriconazole injection and melphalan 
hydrochloride injection, which would have enabled customers to 
negotiate lower prices. Customers and competitors have observed--and 
pricing data confirms--that the price of these pharmaceutical products 
decreases with new entry even after several other suppliers have 
entered the market. Thus, absent a remedy, the Proposed Acquisition 
will likely cause U.S. consumers to pay significantly higher prices for 
voriconazole injection and melphalan hydrochloride injection.

IV. The Consent Agreement

    The proposed Consent Agreement effectively remedies the competitive 
concerns raised by the acquisition in all four markets at issue by 
requiring Pfizer to divest all its rights to generic acetylcysteine 
inhalation solution and Hospira to divest all of its rights and assets 
related to clindamycin phosphate injection, voriconazole injection, and 
melphalan hydrochloride injection to Alvogen. Alvogen is a private, 
global pharmaceutical corporation that develops, manufacturers, sells, 
and distributes generic pharmaceuticals in the United States and in 33 
other countries around the world. The parties must accomplish these 
divestitures and relinquish their rights no later than ten days after 
the Proposed Acquisition is consummated.
    The Commission's goal in evaluating possible purchasers of divested 
assets is to maintain the competitive environment that existed prior to 
the Proposed Acquisition. If the Commission determines that Alvogen is 
not an acceptable acquirer, or that the manner of the divestitures is 
not acceptable, the proposed Order requires the parties to unwind the 
sale of rights to Alvogen and then divest the products to a Commission-
approved acquirer within six months of the date the Order becomes 
final. The proposed Order further allows the Commission to appoint a 
trustee in the event the parties fail to divest the products as 
required.
    The proposed Consent Agreement and Order contain several provisions 
to help ensure that the divestitures are successful. Alvogen will 
acquire Pfizer's acetylcysteine inhalation ANDA and stream of revenue 
associated with the product and will assume Pfizer's role in the 
contractual relationships with the third parties. Pfizer/Hospira will 
supply Alvogen with the clindamycin phosphate injection products for 
three years while the company transfers the manufacturing technology to 
Alvogen or its designee. Similarly, Pfizer/Hospira will transfer the 
third-party development and contract manufacturing agreements for 
voriconazole injection and melphalan hydrochloride injection to 
Alvogen. The proposed Order also requires Pfizer and Hospira to provide 
transitional services to Alvogen to assist it in establishing its 
manufacturing capabilities and securing all of the necessary FDA 
approvals. These transitional services include technical assistance to 
manufacture clindamycin in substantially the same manner and quality 
employed or

[[Page 52478]]

achieved by Hospira, and advice and training from knowledgeable 
employees of the parties.
    The purpose of this analysis is to facilitate public comment on the 
proposed Consent Agreement, and it is not intended to constitute an 
official interpretation of the proposed Order or to modify its terms in 
any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2015-21513 Filed 8-28-15; 8:45 am]
BILLING CODE 6750-01-P



                                                                           Federal Register / Vol. 80, No. 168 / Monday, August 31, 2015 / Notices                                                  52475

                                              there are impacts under the Privacy Act.                requirements as part of this information              Market Street, San Francisco, California
                                              The FCC’s system of records notice                      collection, because they are no longer                94105–1579:
                                              (SORN), FCC/WCB–1, ‘‘Lifeline                           applicable; revise the FCC Form 555 and                 1. KEDAP S.A. de C.V., Mexico City,
                                              Program.’’ The Commission will use the                  the accompanying instructions to                      Mexico; to become a bank holding
                                              information contained in FCC/WCB–1                      require ETCs to provide a Service                     company by acquiring at least 34
                                              to cover the personally identifiable                    Provider Identification Number (SPIN);                percent of the voting shares of
                                              information (PII) that is required as part              and make non-substantive changes to                   Commerce Bank of Temecula Valley,
                                              of the Lifeline Program (‘‘Lifeline’’). As              this information collection, pursuant to              Murrieta, California.
                                              required by the Privacy Act of 1974, as                 44 U.S.C. 3507, to update the FCC Form                  Board of Governors of the Federal Reserve
                                              amended, 5 U.S.C. 552a, the                             497 Instructions and require the                      System, August 26, 2015.
                                              Commission also published a SORN,                       electronic filing of the FCC Forms 497                Michael J. Lewandowski,
                                              FCC/WCB–1 ‘‘Lifeline Program’’ in the                   and 555. These updates do not modify                  Associate Secretary of the Board.
                                              Federal Register on December 6, 2013                    the burdens or costs contained in this                [FR Doc. 2015–21461 Filed 8–28–15; 8:45 am]
                                              (78 FR 73535).                                          information collection.                               BILLING CODE 6210–01–P
                                                 Also, respondents may request
                                                                                                      Federal Communications Commission.
                                              materials or information submitted to
                                              the Commission or to the Universal                      Gloria J. Miles,
                                              Service Administrative Company                          Federal Register Liaison Officer.                     FEDERAL TRADE COMMISSION
                                              (USAC or Administrator) be withheld                     [FR Doc. 2015–21407 Filed 8–28–15; 8:45 am]           [File No. 151 0074]
                                              from public inspection under 47 CFR                     BILLING CODE 6712–01–P
                                              0.459 of the FCC’s rules. We note that                                                                        Pfizer Inc. and Hospira, Inc.; Analysis
                                              USAC must preserve the confidentiality                                                                        of Proposed Consent Orders To Aid
                                              of all data obtained from respondents;                                                                        Public Comment
                                              must not use the data except for                        FEDERAL RESERVE SYSTEM
                                                                                                                                                            AGENCY:    Federal Trade Commission.
                                              purposes of administering the universal
                                              service programs; and must not disclose                 Formations of, Acquisitions by, and                   ACTION:   Proposed Consent Agreement.
                                              data in company-specific form unless                    Mergers of Bank Holding Companies
                                                                                                                                                            SUMMARY:   The consent agreement in this
                                              directed to do so by the Commission.                      The companies listed in this notice                 matter settles alleged violations of
                                                 Needs and Uses: The Commission                                                                             federal law prohibiting unfair methods
                                                                                                      have applied to the Board for approval,
                                              will submit this information collection                                                                       of competition. The attached Analysis to
                                                                                                      pursuant to the Bank Holding Company
                                              after this comment period to obtain the                                                                       Aid Public Comment describes both the
                                                                                                      Act of 1956 (12 U.S.C. 1841 et seq.)
                                              full, three year clearance from the Office                                                                    allegations in the draft complaint and
                                                                                                      (BHC Act), Regulation Y (12 CFR part
                                              of Management and Budget (OMB). The                                                                           the terms of the consent orders—
                                                                                                      225), and all other applicable statutes
                                              Commission also proposes several                                                                              embodied in the consent agreement—
                                                                                                      and regulations to become a bank
                                              revisions to this information collection.                                                                     that would settle these allegations.
                                                                                                      holding company and/or to acquire the
                                              In June 2015, the Commission adopted
                                                                                                      assets or the ownership of, control of, or            DATES: Comments must be received on
                                              an order reforming its low-income
                                                                                                      the power to vote shares of a bank or                 or before September 23, 2015.
                                              universal service support mechanisms.
                                              Lifeline and Link Up Reform and                         bank holding company and all of the                   ADDRESSES: Interested parties may file a
                                              Modernization; Telecommunications                       banks and nonbanking companies                        comment at https://
                                              Carriers Eligible for Universal Service                 owned by the bank holding company,                    ftcpublic.commentworks.com/ftc/
                                              Support; Connect America Fund, WC                       including the companies listed below.                 pfizerhospiraconsent online or on
                                              Docket Nos. 11–42, 09–197, 10–90,                         The applications listed below, as well              paper, by following the instructions in
                                              Second Further Notice of Proposed                       as other related filings required by the              the Request for Comment part of the
                                              Rulemaking, Order on Reconsideration,                   Board, are available for immediate                    SUPPLEMENTARY INFORMATION section
                                              Second Report and Order, and                            inspection at the Federal Reserve Bank                below. Write ‘‘Pfizer Hospira Consent,
                                              Memorandum Opinion and Order,                           indicated. The applications will also be              File No. 151 0074’’ on your comment
                                              (Lifeline Second Reform Order). This                    available for inspection at the offices of            and file your comment online at https://
                                              revised information collection addresses                the Board of Governors. Interested                    ftcpublic.commentworks.com/ftc/
                                              requirements to carry out the programs                  persons may express their views in                    pfizerhospiraconsent by following the
                                              to which the Commission committed                       writing on the standards enumerated in                instructions on the web-based form. If
                                              itself in the Lifeline Second Reform                    the BHC Act (12 U.S.C. 1842(c)). If the               you prefer to file your comment on
                                              Order. Under this information                           proposal also involves the acquisition of             paper, write ‘‘Pfizer Hospira Consent,
                                              collection, the Commission seeks to                     a nonbanking company, the review also                 File No. 151 0074’’ on your comment
                                              revise the information collection to                    includes whether the acquisition of the               and on the envelope, and mail your
                                              comply with the Commission’s new                        nonbanking company complies with the                  comment to the following address:
                                              rules, adopted in the 2015 Lifeline                     standards in section 4 of the BHC Act                 Federal Trade Commission, Office of the
                                              Second Reform Order, regarding the                      (12 U.S.C. 1843). Unless otherwise                    Secretary, 600 Pennsylvania Avenue
                                              retention of subscriber eligibility                     noted, nonbanking activities will be                  NW., Suite CC–5610 (Annex D),
                                              documentation, eligible                                 conducted throughout the United States.               Washington, DC 20580, or deliver your
                                              telecommunications carrier (ETC)                          Unless otherwise noted, comments                    comment to the following address:
                                              designation, and ETC reimbursement                      regarding each of these applications                  Federal Trade Commission, Office of the
tkelley on DSK3SPTVN1PROD with NOTICES




                                              under the Lifeline program; update the                  must be received at the Reserve Bank                  Secretary, Constitution Center, 400 7th
                                              number of respondents for all the                       indicated or the offices of the Board of              Street SW., 5th Floor, Suite 5610
                                              existing information collection                         Governors not later than September 25,                (Annex D), Washington, DC 20024.
                                              requirements, thus increasing the total                 2015.                                                 FOR FURTHER INFORMATION CONTACT: Kari
                                              burden hours for some requirements                        A. Federal Reserve Bank of San                      A. Wallace, Bureau of Competition,
                                              and decreasing the total burden hours                   Francisco (Gerald C. Tsai, Director,                  (202–326–3085), 600 Pennsylvania
                                              for other requirements; eliminate some                  Applications and Enforcement) 101                     Avenue NW., Washington, DC 20580.


                                         VerDate Sep<11>2014   16:19 Aug 28, 2015   Jkt 235001   PO 00000   Frm 00036   Fmt 4703   Sfmt 4703   E:\FR\FM\31AUN1.SGM   31AUN1


                                              52476                        Federal Register / Vol. 80, No. 168 / Monday, August 31, 2015 / Notices

                                              SUPPLEMENTARY INFORMATION:       Pursuant               explained in FTC Rule 4.9(c), 16 CFR                       acquisition of Hospira. Under the terms
                                              to Section 6(f) of the Federal Trade                    4.9(c).1 Your comment will be kept                         of the proposed Consent Agreement, the
                                              Commission Act, 15 U.S.C. 46(f), and                    confidential only if the FTC General                       parties are required to divest all of
                                              FTC Rule 2.34, 16 CFR 2.34, notice is                   Counsel, in his or her sole discretion,                    Pfizer’s rights and assets related to
                                              hereby given that the above-captioned                   grants your request in accordance with                     generic acetylcysteine inhalation
                                              consent agreement containing consent                    the law and the public interest.                           solution and all Hospira’s rights and
                                              orders to cease and desist, having been                    Postal mail addressed to the                            assets related to clindamycin phosphate
                                              filed with and accepted, subject to final               Commission is subject to delay due to                      injection, voriconazole injection, and
                                              approval, by the Commission, have been                  heightened security screening. As a                        melphalan hydrochloride injection to
                                              placed on the public record for a period                result, we encourage you to submit your                    Alvogen Group, Inc. (‘‘Alvogen’’).
                                              of thirty (30) days. The following                      comments online. To make sure that the                        The proposed Consent Agreement has
                                              Analysis to Aid Public Comment                          Commission considers your online                           been placed on the public record for
                                              describes the terms of the consent                      comment, you must file it at https://                      thirty days for receipt of comments from
                                              agreement, and the allegations in the                   ftcpublic.commentworks.com/ftc/                            interested persons. Comments received
                                              complaint. An electronic copy of the                    pfizerhospiraconsent by following the                      during this period will become part of
                                              full text of the consent agreement                      instructions on the web-based form. If                     the public record. After thirty days, the
                                              package can be obtained from the FTC                    this Notice appears at http://                             Commission will again evaluate the
                                              Home Page (for August 24, 2015), on the                 www.regulations.gov/#!home, you also                       proposed Consent Agreement, along
                                              World Wide Web, at http://www.ftc.gov/                  may file a comment through that Web                        with the comments received, to make a
                                              os/actions.shtm.                                        site.                                                      final decision as to whether it should
                                                 You can file a comment online or on                     If you file your comment on paper,                      withdraw from the proposed Consent
                                              paper. For the Commission to consider                   write ‘‘Pfizer Hospira Consent, File No.                   Agreement or make final the Decision
                                              your comment, we must receive it on or                  151 0074’’ on your comment and on the                      and Order (‘‘Order’’).
                                              before September 23, 2015. Write                        envelope, and mail your comment to the                        Pursuant to an Agreement and Plan of
                                              ‘‘Pfizer Hospira Consent, File No. 151                  following address: Federal Trade                           Merger executed on February 5, 2015,
                                              0074’’ on your comment. Your                            Commission, Office of the Secretary,                       Pfizer proposes to acquire Hospira for
                                              comment—including your name and                         600 Pennsylvania Avenue NW., Suite                         approximately $16 billion (the
                                              your state—will be placed on the public                 CC–5610 (Annex D), Washington, DC                          ‘‘Proposed Acquisition’’). The
                                              record of this proceeding, including, to                20580, or deliver your comment to the                      Commission alleges in its Complaint
                                              the extent practicable, on the public                   following address: Federal Trade                           that the Proposed Acquisition, if
                                              Commission Web site, at http://                         Commission, Office of the Secretary,                       consummated, would violate Section 7
                                              www.ftc.gov/os/publiccomments.shtm.                     Constitution Center, 400 7th Street SW.,                   of the Clayton Act, as amended, 15
                                              As a matter of discretion, the                          5th Floor, Suite 5610 (Annex D),                           U.S.C. 18, and Section 5 of the Federal
                                              Commission tries to remove individuals’                 Washington, DC 20024. If possible,                         Trade Commission Act, as amended, 15
                                              home contact information from                           submit your paper comment to the                           U.S.C. 45, by lessening current
                                              comments before placing them on the                     Commission by courier or overnight                         competition in the markets for generic
                                              Commission Web site.                                    service.                                                   acetylcysteine inhalation solution and
                                                 Because your comment will be made                       Visit the Commission Web site at                        clindamycin phosphate injection and
                                              public, you are solely responsible for                  http://www.ftc.gov to read this Notice                     future competition in the markets for
                                              making sure that your comment does                      and the news release describing it. The                    voriconazole injection and melphalan
                                              not include any sensitive personal                      FTC Act and other laws that the                            hydrochloride injection in the United
                                              information, like anyone’s Social                       Commission administers permit the                          States. The proposed Consent
                                              Security number, date of birth, driver’s                collection of public comments to                           Agreement will remedy the alleged
                                              license number or other state                           consider and use in this proceeding as                     violations by preserving the competition
                                              identification number or foreign country                appropriate. The Commission will                           that otherwise would be eliminated by
                                              equivalent, passport number, financial                  consider all timely and responsive                         the Proposed Acquisition.
                                              account number, or credit or debit card                 public comments that it receives on or
                                              number. You are also solely responsible                                                                            I. The Products and Structure of the
                                                                                                      before September 23, 2015. For
                                              for making sure that your comment does                                                                             Markets
                                                                                                      information on the Commission’s
                                              not include any sensitive health                        privacy policy, including routine uses                        The Proposed Acquisition would
                                              information, like medical records or                    permitted by the Privacy Act, see http://                  reduce the number of current suppliers
                                              other individually identifiable health                  www.ftc.gov/ftc/privacy.htm.                               in the markets for generic acetylcysteine
                                              information. In addition, do not include                                                                           inhalation solution and clindamycin
                                              any ‘‘[t]rade secret or any commercial or               Analysis of Agreement Containing                           phosphate injection, and reduce the
                                              financial information which . . . is                    Consent Orders To Aid Public Comment                       number of future suppliers in the
                                              privileged or confidential,’’ as discussed                 The Federal Trade Commission                            markets for voriconazole injection and
                                              in Section 6(f) of the FTC Act, 15 U.S.C.               (‘‘Commission’’) has accepted, subject to                  melphalan hydrochloride injection.
                                              46(f), and FTC Rule 4.10(a)(2), 16 CFR                  final approval, an Agreement                                  Generic acetylcysteine inhalation
                                              4.10(a)(2). In particular, do not include               Containing Consent Orders (‘‘Consent                       solution is a mucolytic therapy used to
                                              competitively sensitive information                     Agreement’’) from Pfizer Inc. (‘‘Pfizer’’)                 treat certain respiratory disorders.
                                              such as costs, sales statistics,                        and Hospira, Inc. (‘‘Hospira’’) that is                    Acetylcysteine liquefies mucus in the
                                              inventories, formulas, patterns, devices,               designed to remedy the anticompetitive                     lungs, which then can be coughed or
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                                              manufacturing processes, or customer                    effects resulting from Pfizer’s                            suctioned out. Patients inhale the
                                              names.                                                                                                             solution through a nebulizer mask,
                                                 If you want the Commission to give                      1 In particular, the written request for confidential   facemask, mouthpiece, tent, or
                                              your comment confidential treatment,                    treatment that accompanies the comment must                intermittent positive pressure-breathing
                                                                                                      include the factual and legal basis for the request,
                                              you must file it in paper form, with a                  and must identify the specific portions of the
                                                                                                                                                                 machine. Only three companies—
                                              request for confidential treatment, and                 comment to be withheld from the public record. See         Fresenius Kabi, partnered with Gland
                                              you have to follow the procedure                        FTC Rule 4.9(c), 16 CFR 4.9(c).                            Pharma Ltd. and Pfizer; Hospira; and


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                                                                           Federal Register / Vol. 80, No. 168 / Monday, August 31, 2015 / Notices                                             52477

                                              American Regent, Inc.—supply generic                    III. Effects                                          voriconazole injection and melphalan
                                              acetylcysteine inhalation solution in the                  In markets for pharmaceutical                      hydrochloride injection.
                                              United States. The branded version of                   products used primarily in hospitals,                 IV. The Consent Agreement
                                              this product, Mucomyst, is no longer                    like the products here, branded drug
                                              available. Fresenius/Gland/Pfizer is the                                                                         The proposed Consent Agreement
                                                                                                      manufacturers are typically unable to                 effectively remedies the competitive
                                              market leader with an approximately                     command a premium price for their
                                              69% share and Hospira has an                                                                                  concerns raised by the acquisition in all
                                                                                                      products because of the reimbursement                 four markets at issue by requiring Pfizer
                                              approximately 22% share.                                structure for drugs administered in                   to divest all its rights to generic
                                                Clindamycin phosphate injection is                    hospitals. Hospitals typically would not              acetylcysteine inhalation solution and
                                              an antibiotic used to treat lung, skin,                 be reimbursed for using a premium-                    Hospira to divest all of its rights and
                                              blood, bone, joint, and gynecological                   priced branded injectable product,                    assets related to clindamycin phosphate
                                              infections in hospitals. Currently, only                when lower-priced therapeutically                     injection, voriconazole injection, and
                                              four companies supply the product in                    equivalent products are available. As a               melphalan hydrochloride injection to
                                              the United States: Pfizer, Hospira,                     result, brand manufacturers of sterile                Alvogen. Alvogen is a private, global
                                              Sagent Pharmaceuticals, and Fresenius                   injectable or inhalation products may                 pharmaceutical corporation that
                                              Kabi. While Pfizer’s clindamycin                        lower their prices and compete directly               develops, manufacturers, sells, and
                                              phosphate product is a branded version,                 with generic manufacturers’ products.                 distributes generic pharmaceuticals in
                                              the price of Pfizer’s product is                        Customers tend to gravitate to the                    the United States and in 33 other
                                              competitive with the generic products.                  lowest-priced product, regardless of                  countries around the world. The parties
                                              Customers, therefore, play the branded                  whether the drug was approved by the                  must accomplish these divestitures and
                                              and the generic products against each                   FDA as a brand or a generic product.                  relinquish their rights no later than ten
                                              other to negotiate prices. Pfizer and                      Like true generic pharmaceutical                   days after the Proposed Acquisition is
                                              Hospira have a combined approximate                     markets, these multi-source                           consummated.
                                              market share of more than 80%.                          pharmaceutical products generally are                    The Commission’s goal in evaluating
                                                Voriconazole injection is an                          commodities, and prices often are                     possible purchasers of divested assets is
                                              antifungal medication used to treat                     inversely correlated with the number of               to maintain the competitive
                                              significant fungal infections in                        competitors in each market. As the                    environment that existed prior to the
                                              hospitals. Pfizer currently sells its Vfend             number of suppliers offering a                        Proposed Acquisition. If the
                                              brand voriconazole injection product                    therapeutically equivalent drug                       Commission determines that Alvogen is
                                              priced competitively with the only                      increases, the price for that drug                    not an acceptable acquirer, or that the
                                              generic version in the United States,                   decreases due to the direct competition               manner of the divestitures is not
                                              which is offered by Sandoz. Hospira is                  between the existing suppliers and each               acceptable, the proposed Order requires
                                              one of a limited number of suppliers                    additional supplier. The Proposed                     the parties to unwind the sale of rights
                                              capable of entering the voriconazole                    Acquisition would eliminate the current               to Alvogen and then divest the products
                                              injection market in the near future.                    competition between two of the three                  to a Commission-approved acquirer
                                                                                                      competitors in the market for generic                 within six months of the date the Order
                                                Melphalan hydrochloride injection is                  acetylcysteine inhalation solution,                   becomes final. The proposed Order
                                              a chemotherapy agent used to treat                      resulting in a duopoly and likely price               further allows the Commission to
                                              multiple myeloma and ovarian cancer.                    increases. Similarly, in the market for               appoint a trustee in the event the parties
                                              There are currently two melphalan                       clindamycin phosphate solution, the                   fail to divest the products as required.
                                              hydrochloride injection products                        Proposed Acquisition would eliminate                     The proposed Consent Agreement and
                                              available in the United States: The                     competition between two of only four                  Order contain several provisions to help
                                              branded version, which was originally                   current competitors, leading to higher                ensure that the divestitures are
                                              developed and marketed by Glaxo                         prices.                                               successful. Alvogen will acquire Pfizer’s
                                              Smith Kline and is now supplied by                         In addition, the Proposed Acquisition              acetylcysteine inhalation ANDA and
                                              ApoPharma USA, Inc. (‘‘ApoPharma’’),                    likely would cause significant                        stream of revenue associated with the
                                              and the generic version, sold by Mylan                  anticompetitive harm to consumers by                  product and will assume Pfizer’s role in
                                              N.V. (‘‘Mylan’’). ApoPharma prices its                  eliminating future competition that                   the contractual relationships with the
                                              branded version of the product                          would otherwise have occurred if Pfizer               third parties. Pfizer/Hospira will supply
                                              competitively with the generic version                  and Hospira remained independent. The                 Alvogen with the clindamycin
                                              offered by Mylan. Pfizer and Hospira are                evidence shows that anticompetitive                   phosphate injection products for three
                                              developing melphalan hydrochloride                      effects are likely to result from the                 years while the company transfers the
                                              injection products, and are two of a                    Proposed Acquisition due to the                       manufacturing technology to Alvogen or
                                              limited number of suppliers capable of                  elimination of an additional                          its designee. Similarly, Pfizer/Hospira
                                              entering the market in the near future.                 independent entrant in the currently                  will transfer the third-party
                                              II. Entry                                               concentrated markets for voriconazole                 development and contract
                                                                                                      injection and melphalan hydrochloride                 manufacturing agreements for
                                                Entry into the four markets described                 injection, which would have enabled                   voriconazole injection and melphalan
                                              earlier would not be timely, likely, or                 customers to negotiate lower prices.                  hydrochloride injection to Alvogen. The
                                              sufficient in magnitude, character, and                 Customers and competitors have                        proposed Order also requires Pfizer and
                                              scope to deter or counteract the                        observed—and pricing data confirms—                   Hospira to provide transitional services
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                                              anticompetitive effects of the Proposed                 that the price of these pharmaceutical                to Alvogen to assist it in establishing its
                                              Acquisition. The combination of drug                    products decreases with new entry even                manufacturing capabilities and securing
                                              development times and regulatory                        after several other suppliers have                    all of the necessary FDA approvals.
                                              requirements, including approval by the                 entered the market. Thus, absent a                    These transitional services include
                                              United States Food and Drug                             remedy, the Proposed Acquisition will                 technical assistance to manufacture
                                              Administration (‘‘FDA’’), is costly and                 likely cause U.S. consumers to pay                    clindamycin in substantially the same
                                              lengthy.                                                significantly higher prices for                       manner and quality employed or


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                                              52478                        Federal Register / Vol. 80, No. 168 / Monday, August 31, 2015 / Notices

                                              achieved by Hospira, and advice and                     DEPARTMENT OF HEALTH AND                              more detail than CMS has previously
                                              training from knowledgeable employees                   HUMAN SERVICES                                        anticipated. While conducting program
                                              of the parties.                                                                                               integrity reviews of submitted data,
                                                                                                      Centers for Medicare & Medicaid                       CMS has identified a number of
                                                 The purpose of this analysis is to
                                                                                                      Services                                              significant discrepancies in the 2014
                                              facilitate public comment on the
                                                                                                      [Document Identifiers: CMS–10401]                     benefit year submissions that issuers
                                              proposed Consent Agreement, and it is
                                                                                                                                                            made for MLR and risk corridors on July
                                              not intended to constitute an official
                                                                                                      Emergency Clearance: Public                           31, 2015. CMS also identified a number
                                              interpretation of the proposed Order or                                                                       of common errors that may lead to
                                                                                                      Information Collection Requirements
                                              to modify its terms in any way.                                                                               submissions that do not comply with
                                                                                                      Submitted to the Office of Management
                                                By direction of the Commission.                       and Budget (OMB)                                      CMS regulations and guidance. In order
                                              Donald S. Clark,                                                                                              to resolve these potential discrepancies,
                                                                                                      AGENCY: Centers for Medicare &                        ensure all submissions comply with
                                              Secretary.                                              Medicaid Services.
                                              [FR Doc. 2015–21513 Filed 8–28–15; 8:45 am]
                                                                                                                                                            applicable guidance, and operate the
                                                                                                      ACTION: Notice.                                       MLR and risk corridors program
                                              BILLING CODE 6750–01–P
                                                                                                      SUMMARY:    The Centers for Medicare &                accurately and effectively, CMS needs
                                                                                                      Medicaid Services (CMS) is announcing                 additional information to explain the
                                                                                                      an opportunity for the public to                      data found in issuers’ underlying MLR
                                                                                                      comment on CMS’ intention to collect                  and risk corridors submissions. Without
                                              GULF COAST ECOSYSTEM                                                                                          this additional information, CMS will be
                                              RESTORATION COUNCIL                                     information from the public. Under the
                                                                                                      Paperwork Reduction Act of 1995 (the                  unable to verify the accuracy of the
                                                                                                      PRA), federal agencies are required to                submission and validate the data
                                              [Docket No.: 108002015–1111–07]                                                                               needed to operate the MLR or risk
                                                                                                      publish notice in the Federal Register
                                                                                                      concerning each proposed collection of                corridors programs.
                                              Notice of Standard Terms and
                                                                                                      information. Interested persons are                   DATES: Comments must be received by
                                              Conditions for Council Grants                                                                                 September 3, 2015.
                                                                                                      invited to send comments regarding our
                                              AGENCY:  Gulf Coast Ecosystem                           burden estimates or any other aspect of               ADDRESSES: When commenting, please
                                                                                                      this collection of information, including             reference the document identifier or
                                              Restoration Council.
                                                                                                      any of the following subjects: (1) The                OMB control number. To be assured
                                              ACTION:   Notice.                                       necessity and utility of the proposed                 consideration, comments and
                                                                                                      information collection for the proper                 recommendations must be submitted in
                                              SUMMARY:   The Gulf Coast Ecosystem                     performance of the agency’s functions;                any one of the following ways:
                                              Restoration Council (Council) has                       (2) the accuracy of the estimated                       1. Electronically. You may send your
                                              established Financial Assistance                        burden; (3) ways to enhance the quality,              comments electronically to http://
                                              Standard Terms and Conditions (STCs)                    utility, and clarity of the information to            www.regulations.gov. Follow the
                                              that will apply to all grants awarded by                be collected; and (4) the use of                      instructions for ‘‘Comment or
                                              the Council.                                            automated collection techniques or                    Submission’’ or ‘‘More Search Options’’
                                                                                                      other forms of information technology to              to find the information collection
                                              DATES: The STCs are effective on August                 minimize the information collection                   document(s) that are accepting
                                              31, 2015.                                               burden.                                               comments.
                                                                                                        We are, however, requesting an                        2. By regular mail. You may mail
                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                      emergency review of the information                   written comments to the following
                                              Kristin Smith, Council staff, telephone
                                                                                                      collection referenced below. In                       address: CMS, Office of Strategic
                                              number: 504–444–3558.                                   compliance with the requirement of                    Operations and Regulatory Affairs,
                                              SUPPLEMENTARY INFORMATION:     The                      section 3506(c)(2)(A) of the Paperwork                Division of Regulations Development,
                                              Council is authorized to award grants                   Reduction Act of 1995, we have                        Attention: CMS–10401/OMB Control
                                              pursuant to the Council-Selected                        submitted to the Office of Management                 Number 0938–1155, Room C4–26–05,
                                              Restoration and Spill Impact                            and Budget (OMB) the following                        7500 Security Boulevard, Baltimore,
                                              Components of the Resources and                         requirements for emergency review.                    Maryland 21244–1850.
                                              Ecosystems Sustainability, Tourist                      This is necessary to ensure compliance                  To obtain copies of a supporting
                                              Opportunities, and Revived Economies                    with an initiative of the Administration.             statement and any related forms for the
                                              of the Gulf Coast States Act of 2012                    We are requesting an emergency review                 proposed collection(s) summarized in
                                              (RESTORE Act), 33 U.S.C. 1321(t)(2)                     under 5 CFR 1320.13(a)(2)(i) because                  this notice, you may make your request
                                              and 1321(t)(3). The Council has                         public harm is reasonably likely to                   using one of following:
                                                                                                      result if the normal clearance                          1. Access CMS’ Web site address at
                                              established STCs that will apply to and
                                                                                                      procedures are followed. We are seeking               http://www.cms.hhs.gov/
                                              be incorporated into all grants awarded
                                                                                                      emergency approval for modifications to               PaperworkReductionActof1995.
                                              by the Council under the RESTORE Act.                   the information collection request (ICR)
                                              The electronic version of the STCs can                                                                          2. Email your request, including your
                                                                                                      currently approved under Office of                    address, phone number, OMB number,
                                              be viewed and downloaded at                             Management and Budget (OMB) control
                                              www.restorethegulf.gov/resources/foia-                                                                        and CMS document identifier, to
                                                                                                      number 0938–1155. CMS seeks an                        Paperwork@cms.hhs.gov.
                                              library-council-documents.
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                                                                                                      emergency revision to the ICR approved                  3. Call the Reports Clearance Office at
                                              Will D. Spoon,                                          under 0938–1155 to collect additional                 (410) 786–1326.
                                                                                                      information from health insurance
                                              Program Analyst, Gulf Coast Ecosystem                                                                         FOR FURTHER INFORMATION CONTACT:
                                              Restoration Council.
                                                                                                      companies as part of the MLR and risk
                                                                                                      corridors programs. This ICR is                       Reports Clearance Office at (410) 786–
                                              [FR Doc. 2015–21417 Filed 8–28–15; 8:45 am]
                                                                                                      necessary to validate data that issuers               1326.
                                              BILLING CODE P                                          have previously submitted to CMS in                   SUPPLEMENTARY INFORMATION:



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Document Created: 2018-02-23 11:04:10
Document Modified: 2018-02-23 11:04:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed Consent Agreement.
DatesComments must be received on or before September 23, 2015.
ContactKari A. Wallace, Bureau of Competition, (202-326-3085), 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation80 FR 52475 

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