Bayer Ag

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IN THE MATTER OF BAYER AG, ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 7 OF THE CLAYTON ACT Docket C-3007. Final Order, Jan. 1980-Modifying Order, July, 1982 This order reopens the proceeding and modifies the Commission s order issued on January 15, 1980, 95 F. C. 254, by deleting Paragraphs I-IV from the order so as to relieve respondent of the requirement of divesting asets used to manufacture allergenic extracts. Accordingly, the portion of Paragraph VII concerning respondent's divestiture effort has also been deleted. REOPENING AND MODIFICATION OF ORDER DOCKET NO. C-3007 By petition filed on February 26, 1982, respondent Miles Laboratories, Inc. ("Miles ), requests on behalf of itself, Bayer AG, and Rhinechem Corporation that the Commission s order in Docket No. C-3007 be modified so that Miles no longer would be required to divest assets used to manufacture allergenic extracts. Pursuant to Section 2.51 of the Commission s Rules of Practice the petition was placed on the public record and Mr. Stanford Yates, representing Kallestad Laboratories, Inc., and Dr. Raymond Rosedale filed comments.

Miles previously had petitioned the Commission to modify the order. However, the Commission by a letter dated May 22, 1981 denied the earlier petition but granted a year s extension of the time in which Miles was required to divest its allergenic extracts assets. Upon consideration of Miles' petition and supporting material and the public comments, the Commission now finds that due to a Food and Drug Administration proposal to eliminate Category III(A) as a classification for biologics, Miles is unable to sell its allergenic extracts business as a complete, viable competitor. In denying Miles previous petition, the Commission noted that the proposed elimination of Category IIIA) might constitute a changed circumstance suffcient to warrant modification of the order. Events since then have established that modification is now warranted. For this reason the Commission has determined that the order should be modified. Accordingly, It is ordered That the proceeding be, and it hereby is, reopened. It is furthered ordered That the order to cease and desist be, and it hereby is, modified by deleting Paragraphs I-IV of the order and so Modifying Order 100 F. much of Paragraph VII as relates to reports of Miles' divestiture efforts. Paragraph VII wil now read:

It is further ordered That respondents shall annually, on the anniversary date of this order, submit in writing to the Federal Trade Commission a verified report setting forth in detail the manner and form in which each or every respondent intends to comply, is complying or has complied with the order. , 229 Complaint