FTC Clears Allergan Merger

Allergan (AGN) said Wednesday that it received approval from the Federal Trade Commission to complete its takeover of Inamed (IMDC).

The Irvine, Calif., maker of Botox and eye-care drugs said it expected to complete the acquisition by Friday, ending a protracted FTC review process and concluding a duel in which Allergan outbid Medicis (MRX) for Inamed.

Inamed shareholders can receive $84 in cash or 0.8498 shares of Allergan for each Inamed share. However, the rules of the exchange say 45% of Inamed shares will be tendered for cash and 55% can be tendered for Allergan stock.

Inamed, of Santa Barbara, Calif., specializes in dermatology products and breast implants. It has received conditional approval from the Food and Drug Administration to sell silicone-gel breast implants in the U.S. for cosmetic purposes, but it hasn't said when it might meet a timetable for answering FDA questions to secure final approval.

The FTC approval was contingent on Allergan relinquishing its rights to Reloxin, which had been licensed to Inamed by the French drug company Ipsen. Allergan will return the rights to Ipsen for Reloxin, an experimental product that's similar to Botox. The FTC said Wednesday that Allergan's acquisition of Reloxin, which is still in clinical trials, "likely would reduce competition and force consumers to pay higher prices" for wrinkle creams based on the botulism toxin.

Shares of Allergan were up $2.45, or 2.2%, to $112.90, while Inamed gained $1.33, or 1.5%, to $90.75.

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