FTC Approves Final Order Preserving Competition in the Market for Over-the-Counter Motion Sickness Drugs

Following a public comment period, the Federal Trade Commission has approved a final order settling charges that the $750 million proposed acquisition of Insight Pharmaceuticals Corporation by Dramamine maker Prestige Brands Holdings, Inc. would likely be anticompetitive.

Under the order, Prestige agrees to divest assets and marketing rights for the over-the-counter motion sickness drug Bonine to Wellspring Pharmaceuticals within 10 days of its acquisition of Insight.

According to the FTC’s complaint, first announced in August 2014, Prestige’s Dramamine – the best-selling branded product in the market for over-the-counter motion-sickness drugs – and Insight’s Bonine are the only two branded OTC products with significant sales. Absent a remedy, the acquisition would have eliminated the close competition between Dramamine and Bonine, and likely led to higher prices for consumers.

The Commission vote approving the final order was 5-0. (FTC File No. 141 0159; the staff contact is Christina R. Perez, Bureau of Competition, 202-326-2048)

The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to antitrust@ftc.gov, or write to the Office of Policy and Coordination, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, Room CC-5422, Washington, DC 20580. To learn more about the Bureau of Competition, read Competition Counts. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.