Kevin J. Arquit Quoted in Global Competition Review Article: “Ventilator Merger Scrutinised as Potential ‘Killer Acquisition’”
Kevin J. Arquit, partner and co-chair of the antitrust group at Kasowitz Benson Torres, is quoted in the Global Competition Review article, “Ventilator Merger Scrutinised as Potential ‘Killer Acquisition,’” discussing the FTC’s decision in 2012 not to challenge the acquisition by major medical device manufacturer Covidien of Newport Medical Instruments, a smaller ventilator manufacturer. The FTC's decision has come under recent scrutiny because the Department of Health and Human Services (“HHS”) had awarded a contract in 2010 to Newport to manufacture ventilators to handle a potential shortfall in the event of a pandemic, and observers had suspected that the acquisition was for the purpose of “killing off” Newport’s lower cost ventilator which could challenge Covidien’s existing ventilator business. The HHS contract was later canceled apparently based on Covidien’s concerns that the contract would not be profitable, and awarded to another company. HHS reportedly still has not received the ventilators.