Science in the Triangle

Antitrust regulators alleged in a complaint filed Thursday that the two largest producers of four life-saving medicines made from blood plasma have figured out ways to keep prices high.

The Federal Trade Commission’s complaint aims to block the $3.1 billion takeover of Talecris Biotherapeutics, a company based in Research Triangle Park and one of the area’s largest drugmakers. Last August, CSL, a larger Austrialian rival, offered to buy Talecris, which employs about 2,100 in the Triangle and operates a large production plant in Clayton.

A review of the effects the merger would have on the remaining suppliers led the FTC to oppose the deal.

Consolidation reduced the number of companies that make blood plasma-based treatments to five, from 13 in 1990, and prices for the drugs have already increased, the complaint alleged. A redacted copy of the complaint blames current market leader Baxter International of Deerfield, Ill., and CSL, with $2.5 billion in annual sales the second largest supplier, but stops short of accusing the two companies of price fixing.

“Suppliers have learned they can maximize profits if each firm does its part to maintain overall industry [redacted] holding back on expanding output to avoid driving prices lower,” the complaint read.

Talecris, which expanded aggressively in the past three years, is the third-largest supplier and the only company able to interfere with Baxter and CSL’s efforts to coordinate supply and price, according to the FDC.

Dr. Brian McNamee, CSL’s chief executive, strongly disagreed with the FTC’s allegation that prices of plasma-based drugs aren’t competitive. “We believe the reverse is true,” McNamee said in a prepared statement. “In fact consumers have benefited by increased output, innovation and lower prices than would otherwise have been the case.”

The four treatments at issue are immune globulin, albumin, Rho-D and alpha-1 antitrypsin. All are disease fighting proteins found in blood plasma, a yellowish fluid. People with certain genetic or immune disorders lack these proteins and rely on infusions for which no good substitutes exist. Treatments can cost as much as $90,000 per patient per year.