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Johnson & Johnson Cancels Acquisition Of Takeda's Tachosil Surgical Patch

Johnson & Johnson Cancels Acquisition Of Takeda's Tachosil Surgical Patch
Regulatory issues have forced the acquisition of Takeda Pharmaceutical’s surgical patch product TachoSil by Johnson & Johnson. The cancellation of the deal was announced by the American multinational corporation that makes medical devices, pharmaceutical and consumer packaged goods on Friday.
The deal for the acquisition of TachoSil, a surgical patch to control bleeding, manufactured by Japan’s biggest drugmaker Takedam by Johnson & Johnson’s subsidiary Ethicon worth $400 million was announced by the Japanese company in May last year. 
“Ethicon and Takeda have mutually decided to terminate the TachoSil transaction, agreeing that it was the right decision given the regulators’ concerns,” a representative for Johnson & Johnson said in a statement.
The existence of the potential regulatory issues in the deal was hinted at by the chairman of the United States Federal Trade Commission, Joseph Simons last Friday. The regulator raised the red flag for the deal because Evarrest which is the only other fibrin sealant patch designed to stop bleeding during surgery that has been approved in the United States is also sold by because Johnson & Johnson and therefore purchase of TachoSil, the surgical patch to control bleeding of Takedam will reduce competition for the product in the market.
“Staff had significant concerns about the likely anticompetitive effects and had recommended that the Commission block the transaction. Now that the deal has been abandoned, patients and surgeons will continue to benefit from competition,” Simons said in an email statement.
Concerns about the deal had also been expressed by antitrust regulators of the European Union in late March. The regulators decided to open a full investigation in the deal while saying that the it would be difficult for rivals in the segment ot enter the market because of the high development costs of the products.

Christopher J. Mitchell

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