Competition authorities on both sides of the Atlantic and beyond are signaling increased scrutiny of pharmaceutical mergers to protect innovation. The US Federal Trade Commission has formed a multilateral merger task force with the Department of Justice and multiple state attorneys general, as well as Canada's Competition Bureau and the UK's Competition and Markets Authority. The focus is on pharmaceutical transactions, but concerns extend to other sectors of the economy, including medical devices and tech markets. The main triggers are macro-economic and political concerns about market concentration levels, increasing healthcare costs, and specific instances of bad behavior. The debate centers on the ability of merger control laws to prevent "killer acquisitions" that discontinue overlapping R&D projects. However, the potential chilling effect of increased scrutiny on innovation is a concern.
