Michelle Yost Hale, Matthew D. McDonald, and Merrill Stovroff, attorneys at Wilson Sonsini Goodrich & Rosati, authored a recent Competition Policy International article titled "The Evolving Role of Innovation Theories of Harm in the Antitrust Analysis of Life Science Mergers."

The piece analyzes the Federal Trade Commission’s evolving use of innovation competition theories of harm in merger review following the adoption of the new 2023 Merger Guidelines. The article focuses on the life sciences market and its intensive and expensive research and development (R&D), lengthy timelines for product development, and substantial regulatory impediments on the road to commercialization.

The authors posit that while the preservation of innovation incentives is a legitimate and necessary antitrust objective, overly aggressive enforcement at early stages also jeopardizes investment and hinders the progress it seeks to protect. They also call for the development of principled thresholds and clearer evidentiary standards to delineate when R&D driven mergers warrant intervention.

To read the full article, click here.