Abbott Laboratories and Alza Corp call off $7.3 billion merger

Abbott Laboratories and Alza Corp say they will not be able to completetheir previously-announced $7.3 billion merger (Marketletter June 28) because they have been unable to satisfy the regulatory requirements demanded by the US Federal Trade Commission.

"We are obviously disappointed that we were unable to complete this transaction,'' said Abbott's chief executive Miles White, adding that the two firms had "worked diligently over the last five months to successfully resolve the issues with the FTC, but could not reach a solution that was in the best interest of our shareholders."

One of the principal sticking points was the divestiture of the US rights to Alza's prostate cancer treatment, Viadur (leuprolide acetate implant). The latter's chairman, Ernest Mario, said in a conference call that the company had reached a supply-and-technology transfer agreement with a buyer for the treatment, but this proposal was not sufficient to satisfy the requirements of the FTC.