Lupin to divest two Gavis drugs for deal approval

India’s Lupin Ltd will divest two generic drugs sold by Gavis Pharmaceuticals LLC to clear antitrust hurdles related to its $880 million acquisition of the company, the U.S. Federal Trade Commission said. The two drugs, used to treat bacterial infections and ulcerative colitis, will be sold to New Jersey-based generic drugmaker G&W Laboratories, the FTC said.

Lupin last year said it would buy Gavis to revive flagging growth in the U.S. by giving it access to generic drugs that treat niche diseases. If not for this divestiture, the takeover would have combined two of four companies that currently market a generic version of doxycycline monohydrate, an antibacterial treatment, in two doses, likely resulting in higher prices, the FTC said. The merger would have also eliminated one of the few firms likely to enter the market to make generic versions of long-acting mesalamine.