FTC Gives Conditional Approval to St. Jude Buyout

The Federal Trade Commission gave its approval for the $25 billion acquisition of St. Jude Medical Inc. by Abbott Laboratories by requiring that Abbott sell off two medical device businesses. A consent agreement between Abbott, of Lake Bluff, Ill. and the federal agency would have no impact on the St. Jude cardiovascular-device manufacturing facility in Sylmar where implantable defibrillators and pacemakers are made. The FTC had filed a complaint alleging that without the divesture of the businesses developing and making vascular closure devices and “steerable” sheaths, Abbott would harm competitiveness by having a monopoly or near monopoly on the two devices. The consent order requires Abbott to sell all assets related to vascular closure devices and “steerable” sheaths to Terumo Corp., in Tokyo. “Terumo does not currently sell any vascular closure devices or steerable sheaths but has sold related products and medical devices in the U.S. market for more than 30 years, and possesses the industry experience and reputation necessary to replace competition,” according to the FTC. After a 30-day public comment period, the commission will then vote on final approval of the consent agreement.