In a joint statement, the companies said they disagreed with the FTCs conclusions but that it would be unwise to fight the commission in court. Based on a careful analysis of the situation and all alternatives available, we believe that termination of the merger agreement is in the best interest of all parties, Talecris Chairman and CEO Lawrence Stern said in the statement.
Talecris holds the third-largest market share in U.S. sales of plasma-derived therapies, behind CSL and market leader Baxter International. Suppliers have learned they can maximize profits if each firm does its part to maintain overall industry stability, holding back on expanding output to avoid driving prices lower, the FTC wrote in its complaint in U.S. District Court in Washington. By acquiring Talecris, CSL would eliminate the only significant threat to this durable and highly profitable oligopoly.
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