ACCC will not oppose Mylan’s proposed merger with Pfizer’s Upjohn divisionChristian Fernsby ▼ | September 11, 2020
The ACCC will not oppose Mylan NV’s proposed merger with Pfizer’s Upjohn division, after Mylan and Upjohn offered a court-enforceable undertaking to divest three off-patent branded pharmaceuticals in response to the ACCC’s competition concerns.
Topics: ACCC Mylan Pfizer Upjohn
The divestiture undertaking accepted by the ACCC means that competition that would have been lost as a result of this merger will be replaced by competition from the ACCC approved buyer of these off-patent brands. The ACCC has approved Aspen up-front as the buyer, after an agreement was reached between Aspen and the merger parties.
The active ingredients supplied to pharmacies and hospitals which are to be sold are:
- Amlodipine/Atorvastatin (Brand name: Caduet - a lipid-regulating cardiovascular treatment)
- Latanoprost (Brand name: Xalatan – an anti-glaucoma treatment)
- Latanoprost/Timolol (Brand name: Xalacom – an anti-glaucoma treatment)
The ACCC was concerned that the merger would significantly reduce competition for the supply of pharmaceutical products based on these active ingredients which are used to treat cardiovascular conditions and certain types of glaucoma.
“Mylan and Upjohn are currently the only suppliers of Amlodipine/Atorvastatin, meaning the proposed merger would make the combined new firm, Viatris, the only supplier in the Australian market,” ACCC Commissioner Stephen Ridgeway said.
“For medicines based on Latanoprost and Latanoprost/Timolol, we were concerned that remaining competitors would not be a sufficient constraint on the merged entity.”
“Caduet, Xalatan and Xalacom are well established brands, and will provide the buyer with a strong opportunity to compete against the new combined firm Viatris,” Mr Ridgeway said.
Pfizer has also provided a court-enforceable undertaking to support the divestment process. ■