CSL and Talecris Biotherapeutics announced that they mutually agreed to terminate their proposed $3.1-billion merger agreement on Monday due to opposition from the US Federal Trade Commission, which has stated that CSL’s purchase of Talecris would result in substantially reduced competition for certain plasma-derivative protein therapies.

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CEO Brian McNamee of CSL commented that the company’s board of directors “did not believe that entering into a protracted litigation process with the FTC, with its inherent risks, substantial costs, and lengthy distraction of CSL management and staff from planning and running our businesses would be in the best interests of our stakeholders.”

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CSL will pay a $75-million break-up fee to Talecris, and the companies noted that a plasma supply contract that was signed in connection with the merger agreement will not be affected.

Source: FirstWord

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