Excerpt
A wave of consolidations among pharmaceutical companies in recent years has prompted increased scrutiny from antitrust agencies
Kinch, MS, Lehmann J-Y, Mantovanelli F. 2024. Killer Acquisition or Scientific Advance? Reconsidering the Competitive Aspect of Biotech Mergers. Law360.
Over the past few years, antitrust agencies have challenged multiple deals in the pharmaceutical industry, alleging that the proposed mergers would harm current or future innovation. One rationale behind the agencies’ concerns is the killer acquisition theory – the idea that a larger incumbent acquires a smaller company for the sole purpose of eradicating future competition. In the Law360 article “How Biotech Deals May Help Competition, Despite FTC View,” Analysis Group authors explore the complexities of evaluating killer acquisition theories, given the unique process by which new products are developed and come to market.