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India – CCI Approves Mylan’s Acquisition Of Abbot’s Generics Business.

13 January, 2015

 


On November 10, 2014, CCI approved the proposed combination between Mylan and Abbot, which related to the acquisition of the established products division (‘EPD’) of Abbott, by Mylan, through its subsidiaries being New Moon B.V. (‘Acquirer’) and Moon of PA Inc., (‘Proposed Transaction’).

 
CCI observed that Mylan is a global pharmaceutical company engaged in the development, licensing, manufacturing, marketing and distribution of generic, branded generic and specialty pharmaceuticals. Further, Mylan is present in India through its six Indian entities namely, Mylan Laboratories Limited, Astrix Laboratories Limited, Agila Specialities Private Limited, Onco Therapies Limited, Mylan Pharmaceuticals Private Limited and Mylan Laboratories India Private Limited.

 
CCI also observed that Abbott is incorporated under the laws of Illinois, U.S.A. and is a global healthcare company which has four major business segments viz., nutritionals, medical devices, branded generics and specialty pharmaceuticals and diagnostics. Abbott is present in India through its four subsidiaries namely, Abbott India Limited, Abbott Healthcare Private Limited, Abbott Medical Optics Private Limited and Abbott Truecare Pharma Private Limited.

 
However, in relation to the minority acquisition by Abbott CCI stated that an acquisition of shares or voting rights even if it is less than 25% may raise competition concerns if the acquirer and the target are either engaged in business of substitutable products/services or in activities at different stages or levels of the production chain. They need not necessarily be termed as acquisition made ‘solely as investment’ or ‘in the ordinary course of business’, and thus would require competition assessment, on a case to case basis, under the relevant provisions of the Competition Act.

 
CCI observed that there is a horizontal overlap between the pharmaceutical products of Mylan and Abbott in India with respect to certain molecules namely, colecalciferol, progesterone, human menopausal gonadotrophin, chorionic gonadotrophin, emtricitabine tenofovir disoproxil and tenofovir disoproxil. However, in all of the overlapping molecules, the combined market share of Mylan and Abbott was insignificant and there is no vertical relationship between the Abbott and Mylan in India. Additionally, there would be no acquisition of control over Mylan by way of the Abbott’s minority acquisition.

 
Accordingly, CCI found that the Proposed Transaction was unlikely to result in an AAEC in the market and accordingly approved the Proposed Transaction.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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