The US Federal Trade Commission (FTC) has approved the merger of Sun Pharmaceutical Industries and Ranbaxy Laboratories on the condition that Ranbaxy divest its interests in generic minocycline tablets.

The FTC had held that the $4-billion merger of Ranbaxy with Sun Pharmaceutical was potentially “anti-competitive” since it would reduce the number of suppliers of the drug (in three different strengths) in the US market.

Ranbaxy is one of the three suppliers of minocycline, which is used to treat bacterial infections, including pneumonia, acne, and urinary tract infections, in the US.

On Monday, Sun said: “FTC has completed its review of the proposed acquisition of Ranbaxy by Sun Pharma and has granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act).” This satisfies one of the essential conditions for closing the acquisition, the company added.

“Sun Pharma and Ranbaxy are working closely towards completion of the transaction and will comply with the conditions laid down in the FTC consent agreement within the specified time,” Sun Pharma added.

FTC has ordered Sun and Ranbaxy to sell Ranbaxy’s generic minocycline capsule assets to Torrent Pharmaceuticals. Further, the two companies must also “supply generic minocycline tablets and capsules to Torrent until the company establishes its own manufacturing infrastructure,” the trade body has said.

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