EC Approves Acquisition of Pharma Company Actavis by Rival Watson
The Commission examined the effects of the proposed transaction on the markets for a number of drugs, such as anti-depressants and anti-hypertensives, in particular in Denmark, Sweden and the UK.
8 Oct 2012 --- The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the Swiss-based pharmaceutical company Actavis by the generic pharmaceutical company Watson of the U.S. The Commission concluded that the merged entity will continue to face a number of strong competitors.
The Commission examined the effects of the proposed transaction on the markets for a number of drugs, such as anti-depressants and anti-hypertensives, in particular in Denmark, Sweden and the UK.
The investigation showed that despite significant changes in the competitive situation in some of the markets, a sufficient number of credible and strong competitors will continue to exercise a competitive constraint on the merged entity.
The Commission therefore concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or a substantial part of it.
The transaction was notified to the Commission on 31 August 2012.
Watson is a large generic pharmaceutical company historically focused on the U.S.
Actavis is a large generic pharmaceutical company with a wider geographic presence.
Generic drugs are comparable to branded drugs in terms of dosage form, strength, route of administration, quality, performance characteristics and intended use. In most cases, generic products are available once the patent protections afforded to the original developer have expired.
