Ron Lanton Discusses Antitrust Risk in a Potential AstraZeneca and Bristol Myers Squibb Merger

Pharmaceutical Executive recently spoke with Ron Lanton, Senior Partner and Global Strategist at Lanton, Lanton & Sosa Law PLLC, about the legal issues that would arise if AstraZeneca and Bristol Myers Squibb pursued a merger.

Although the reported discussions remain unconfirmed, a transaction involving two pharmaceutical companies of this size provides an important illustration of how regulators evaluate consolidation in the life sciences industry.

Lanton explained that the Federal Trade Commission would look beyond the overall size of the companies and focus on where their marketed drugs and pipeline products compete. Potential areas of concern could include oncology treatments, cell therapies, antibody drug conjugates, and research programs that may become future competitors.

The review could also require the companies to sell a major drug franchise or pipeline program to preserve competition. If the overlapping assets are too interconnected, the divestitures needed to secure approval could undermine the strategic purpose of the transaction itself.

The conversation also addressed the different regulatory hurdles posed by the Federal Trade Commission, the European Commission, and the United Kingdom’s Competition and Markets Authority, as well as the companies’ obligations to disclose credible merger discussions or respond to market rumors.

Read the full conversation in Pharmaceutical Executive seen here.