On Dec. 16, 2008, the FTC filed a complaint against Ovation Pharmaceuticals, Inc. in the U.S. District Court for the District of Minnesota, alleging that the Illinois-based drug manufacturer illegally charged monopoly prices for its drug that is used to treat a life-threatening heart condition in premature infants, after purchasing the only similar medicine from a competitor in 2006. After acquiring the competing medication, the FTC alleges that Ovation raised the price for its drug “nearly 1300 percent,” from $36 to approximately $500 a vial. The 2006 transaction did not require a Hart Scott Rodino filing, but the transaction and Ovation’s allegedly anticompetitive conduct are being challenged now by the FTC, with the FTC seeking to have Ovation divest itself of one of the drugs and to disgorge the allegedly monopolistic profits it has reaped from sales of the drug.
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