HeartWare International Inc. and Thoratec Corp. agreed to spike their proposed, $282 million merger in the face of opposition from the U.S. Federal Trade Commission.
The FTC, saying it believes the merger “would substantially reduce competition in the U.S. market for left ventricular devices,” alleged that Thoratec already enjoys a monopoly on the sale of LVADs in the U.S. and would only increase its hegemony if the merger is consummated.
“Thoratec seeks to maintain its monopoly by acquiring HeartWare, thus eliminating the only significant threat to Thoratec’s continued dominance of the LVAD market,” the commission said, according to a press release.
Pleasanton, Calif.-based Thoratec and Framingham, Mass.-based HeartWare both make small, implantable heart pumps designed to assume the left ventricle’s primary role in pumping blood throughout the body.
The companies said they are “disappointed” by the decision and, although still supportive of the aborted deal, decided that it was in the best interest of shareholders not to pursue “what would likely be a protracted, costly and unpredictable litigation process.”
