Leading organizations are expressing concern about the impact of the Federal Trade Commission (FTC)’s final Hart-Scott-Rodino (HSR) premerger notification rule, including the chilling effect it could have on biopharmaceutical and life sciences innovation.
While the agency revised certain policies included as part of the proposed rule, leading organizations assert that the final policy still imposes a significant burden on life sciences companies that rely on competitive mergers and acquisitions (M&A) as a fundamental path to bring innovative new treatments and cures to market.
Highlights from key stakeholders are included below:
“According to the government’s own data, 98% of mergers do not raise competitive concerns. The increased burden the new rule imposes remains questionable. Increased bureaucracy will stifle innovation, reduce market efficiencies, and ultimately harm consumers who benefit from the competitive dynamics that mergers can foster.”
“Despite some changes from the proposed rule, the final rule still imposes substantial costs, time, and administrative burdens on companies seeking to engage in M&A activities – including mergers, partnerships and licensing deals – which are fundamental to life sciences innovation… This will be especially devastating to our early-stage innovators and startups for whom M&A represents a path to necessary resources, investments and infrastructure needed to advance breakthroughs from the lab to patients.”
“The final rule will chill mergers and acquisitions (M&A) and hamper Maryland’s technology and life sciences industries, which employ more than 300,000 Marylanders and generate billions of dollars in economic activity in our state. Above all, we believe in saving lives, securing our nation, and improving quality of life through innovation, and restricting M&A threatens to upend industry’s ability to do so.”
“We are particularly concerned that small and early-stage biopharmaceutical companies will bear the brunt of these costs, which may be insurmountable as an estimated 80% of these companies operate without a profit. We urge our federal representatives to support a return to balanced and bipartisan public policies that are supportive of Indiana’s life sciences ecosystem, which requires pro-competitive mergers in order to continue pushing the boundaries of innovation, collaboration and growth.”
“The final HSR rules as issued by the Federal Trade Commission will impose a significant burden on the future of New Jersey’s life sciences community and our ability to do what we do best – saving lives around the world by finding new treatments and cures in New Jersey.”
“The increased burden of premerger reporting requirements will impose a significant burden on the life sciences ecosystem in Ohio and the ability for our state’s industry to bring discoveries from the lab to patients. Small and early-stage biopharmaceutical companies will bear the brunt of these costs, which may be insurmountable as an estimated 80% of these companies operate without a profit.”
– Ohio Life Sciences
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