The Federal Trade Commission said Monday it is ready to approve Johnson & Johnson’s $21.3 billion acquisition of orthopedic devices manufacturer Synthes Inc., provided the pharmaceutical giant completes a sale of its global trauma business to orthopedic competitor Biomet.
After J&J announced the megadeal with Synthes—the company’s largest transaction ever—last year, the FTC expressed concerns that the acquisition would inhibit competition in the market for orthopedic devices. The federal regulator’s hesitation focused specifically on volar distal radius (DVR) plating systems, which are used in the surgical treatment of wrist fractures. Noting in its ruling Monday that Synthes and J&J own DVR systems that when combined account for a nearly 71 percent share of the U.S. market, the agency ordered J&J to sell its domestic DVR assets.
