Watson Pharmaceuticals,Inc. today announced that the Federal Trade Commission (FTC) hasaccepted a proposed consent order for public comment relating to Watson'spending acquisition of privately held Arrow Group and has granted earlytermination of the Hart Scott Rodino waiting period, thereby permitting theparties to close the transaction. The parties have now obtained allregulatory approvals required to close the transaction. Accordingly, theparties expect to consummate the acquisition of Arrow by Watson today.Under the terms of a consent order with the FTC, Watson and Arrow haveagreed to the following conditions to complete the transaction:
-- Watson will sell to Impax Laboratories, Inc. its Abbreviated New DrugApplication (ANDA) for Cabergoline, the generic equivalent toDostinex.
-- Cobalt Pharmaceuticals, Inc. will sell to Impax Laboratories, Inc. itspending ANDA for Dronabinol, a generic equivalent to Marinol.
-- Resolution Chemicals Ltd. (Resolution), the subsidiary of the ArrowGroup that manufactures Dronabinol active pharmaceutical ingredient,and that will supply finished Dronabinol product to Impax Laboratoriesupon approval, will be sold to existing management of ResolutionHoldings and divested from the Arrow Group immediately prior to theclosing. Resolution has entered into an agreement with ImpaxLaboratories to supply finished Dronabinol product.