Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Pfizer to divest four pharmaceutical products to resolve competition concerns over Hospira acquisition, (Aug 14, 2015)

By Linda O’Brien, J.D., LL.M.

To address competition concerns regarding the supply of four pharmaceutical products, the Canada Competition Bureau has reached an agreement with Pfizer Inc. relating to its proposed acquisition of Hospira, Inc., the Bureau announced today.

Pfizer’s global portfolio includes medicines and vaccines, as well as many well-known consumer health care products. Hospira is a provider of injectable drugs and infusion technologies.

Under the consent agreement, Pfizer will sell the Canadian assets related to its marketed injectable cytarabine products (used to treat various types of blood cancers), injectable epirubicin products (used to treat a variety of cancerous tumor types) and oral tablet methotrexate products (used to treat certain cancers as well as severe psoriasis and arthritis), as well as Hospira’s pipeline injectable voriconazole product (used to treat serious, invasive fungal infections).

In a statement explaining the approach taken by the Bureau, the Bureau focused on whether the proposed transaction was likely to substantially lessen competition in markets where both parties were current suppliers or, where either Pfizer or Hospira had a product still in research and development (pipeline product), substantially prevent future competition. In its analysis, the Bureau took into consideration, among other factors, the extent to which effective competitors would remain in the relevant markets after the transaction, and the likelihood of entry or expansion by other potential suppliers.

Following its review of the proposed transaction, the Bureau concluded that Pfizer’s acquisition of Hospira would likely have resulted in a substantial lessening or prevention of competition for the supply of those four pharmaceutical products in Canada. The Bureau is confident that the implementation of this consent agreement will adequately resolve its concerns.

In conducting its review, the Bureau cooperated with a number of its international counterparts, including the FTC and the European Commission. The Bureau also conducted interviews with numerous stakeholders, including hospital procurement personnel, provincial and private formularies, group purchasing organizations, medical professionals and competitors.

Jeanne Pratt, Senior Deputy Commissioner, Mergers and Monopolistic Practices Branch, commented, “Pfizer worked cooperatively with the Bureau in order to resolve the Bureau’s competition concerns. I am satisfied that this agreement will ensure that competition is preserved in the supply of these important therapies."

Companies: Pfizer Inc.; Hospira, Inc.

News: AcquisitionsMergers Antitrust