Rep. Johnson moves to protect consumers who suffer from rare diseases

RRCAL Ranking Member Calls for “Thorough Review” of Proposed Rare Disease Drug Makers Merger

WASHINGTON, D.C. – U.S. Rep. Henry C. “Hank” Johnson, Jr. (D-GA) today made the following statement concerning the announcement of a proposed merger of Shire and Baxalta. Rep. Johnson is the ranking member of the House Judiciary Subcommittee on Regulatory Reform, Commercial and Antitrust Law (RRCAL), which exercises jurisdiction over antitrust laws and competition:

“Today, Shire, a pharmaceutical corporation focused on rare diseases that is based in Ireland, has announced plans to acquire Baxalta, a similarly focused biotechnology firm headquartered in Illinois, for a reported $33 billion.

“If consummated, this transaction could potentially foreclose new entrants in the rare-disease drug marketplace, undermining consumer choice at a time of rampant consolidation in the healthcare marketplace.

“Furthermore, it has become clear that mergers are increasingly motivated by the pursuit of a “tax-free status.” Although this issue may go beyond our antitrust laws, it is unacceptable for corporations to flee our shores in an effort to opt out of the tax system.

“I expect this transaction to receive a careful review to ensure that it will not harm pharmaceutical innovation in the field of rare diseases, which is critical to ensuring the health of thousands of Americans, or allow a U.S. company to evade our tax laws.”

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