Food and Drug Law Institute
The pharmaceutical industry is in the midst of a wave of consolidation. Some of the largest mergers in history have involved recent combinations of multinational pharmaceutical firms. The article discusses the reasons for this wave of consolidation, as well as the antitrust risks involved in these mergers. It begins with some observations about the causes of the current wave of consolidation, considering factors such as global competition and increased technological competition. It describes the law and economic model for merger analysis, based on federal Merger Guidelines. It also applies the model to certain categories of pharmaceutical and health care product mergers including horizontal mergers in markets where both parties are producing in the relevant markets. Finally, it analyzes some of the remedy issues found in pharmaceutical industry mergers.