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Commission approves merger of Mylan and Pfizer's Upjohn division, subject to conditions

Christian Fernsby |
The European Commission has approved the proposed merger between the global pharmaceutical company Mylan and Upjohn, a business division of Pfizer, which operates Pfizer's off-patent branded and generic established medicines.

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Topics: MYLAN    PFIZER    UPJOHN   

The decision is conditional on the divestment of Mylan's business for certain generic medicines.

The Commission's investigation focused on the market for genericised medicines, which are sold to pharmacies and hospitals.

Mylan and Upjohn overlap in various therapeutic areas such as cardiovascular, genito-urinary, musculoskeletal, nervous system, and sensory organ treatments.

The Commission found that for the genericised medicines involved in this case, competition between suppliers typically takes place (i) at the national level, given the differing national regulatory/reimbursement schemes and competitive dynamics between pharmaceutical suppliers, (ii) between medicines using the same chemical molecule as an active pharmaceutical ingredient for a specific therapeutic indication.

Generally, the molecules covered by the investigation are not interchangeable with other molecules for patients or health practitioners and should therefore be assessed separately.

The Commission's investigation found that no competition concerns arise for the majority of the products supplied by both Mylan and Upjohn.

However, in some countries and for some molecules, the Commission found the transaction would raise competition concerns because of the strong position of the two companies and the limited number of significant competitors on the market.

To address these concerns, Mylan and Upjohn offered to divest to one or more suitable purchasers, Mylan's business in the relevant markets, including the applicable marketing authorisations, contracts and brands, as well as transitory manufacturing and supply arrangements.

These include certain generic medicines across 20 countries throughout the EEA and the UK.

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