Brand Name Drug Company to Acquire Manufacturer of Narcan as Both Work to Block Competition from More Affordable Alternatives
In case you missed it, on Monday pharmaceutical company Indivior announced plans to acquire Opiant Pharmaceuticals as part of an effort to consolidate market power over opioid addiction and opioid treatments and undermine access to more affordable alternatives. Opiant Pharmaceuticals manufactures Narcan, one of the best-known and top-selling opioid overdose-reversal drugs in the world. Narcan earned the company close to $400 million per year prior to facing generic competition last December.
As the Wall Street Journal reports, the deal comes as both companies are “fighting the introduction of cheaper generic versions of their legacy medications” – and as demand for overdose-reversal drugs is on the rise. Indivior said the company is targeting Opiant’s pipeline for future products it can shield from generic competition, including multiple overdose-reversal and anti-addiction drugs.
The pharmaceutical industry is rife with examples of Big Pharma companies with histories of price-gouging and engaging in anti-competitive tactics to undermine more affordable alternatives merging to further consolidate market power and keep prices high.
Learn more about Big Pharma M&A deals HERE.
Read more about Big Pharma’s expectation-beating earnings following repeated price hikes HERE.
Learn more about bipartisan, market-based solutions to hold Big Pharma accountable HERE.