Archived — Competition Bureau requires divestitures in Teva/ratiopharm merger
OTTAWA, July 30, 2010 — The Competition Bureau announced today that it has reached an agreement with generic drug manufacturers Teva Pharmaceutical Industries Ltd. and the Merckle Group (carrying on business as ratiopharm), requiring divestitures in order to resolve competition concerns in Canada related to their proposed merger.
The Bureau concluded that the merger would likely lead to a substantial lessening of competition in the supply of acetaminophen oxycodone tablets and morphine sulfate sustained-release tablets in Canada. These drugs are commonly used for the relief of moderate to severe pain. Under the terms of a consent agreement, the parties must sell assets and associated licences of either Teva or ratiopharm relating to the sale and supply of certain dosage forms of these products in Canada.
This agreement promotes competition in the supply of generic drugs that are essential to the health and welfare of many Canadians," said Melanie Aitken, Commissioner of Competition. "
The remedies secured by the Competition Bureau will ensure that a sufficient number of affordable generic versions of these medications remain available to patients."
Mergers in Canada are subject to review by the Competition Bureau under the Competition Act to ensure that they will not result in a substantial lessening or prevention of competition. Over the course of its review, the Bureau contacted a significant number of market participants and cooperated closely with the European Commission's Directorate General for Competition.
Shortly after its registration with the Competition Tribunal, the full text of the Consent Agreement will be available on the Tribunal's Web site.
The Competition Bureau is an independent law enforcement agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.
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