Brussels, 04/08/2010 (Agence Europe) - On Tuesday 3 August, the European Commission authorised the planned acquisition of the German producer of generic pharmaceuticals, Ratiopharm, by the Israeli Teva, which also specialises in the production of generics. This decision is, however, subject to the divestment of fifteen products in the Netherlands and one in Hungary.
The Commission's investigations showed that most of the markets for the pharmaceutical products in question would not face any problems of competition, due to the competitive pressure that other producers of pharmaceutical products would continue to exert. However, it noted that competition problems would arise in the Netherlands for a number of finished pharmaceutical products, even though the Dutch generics market as a whole would not be affected. The products concerned are used to treat certain conditions such as anaemia, high blood pressure, asthma and gout, as well as inflammation and pain. The Commission also revealed that the extremely high cumulative market share for the painkiller Tramadol in Hungary, and the existence of a strong originator brand for Teva, could cause problems.
In order to address the Commission's concerns, Teva proposed to divest the Ratiopharm products concerned, plus all of the latter's distribution activities in the Netherlands, in order to guarantee that any newcomer could compete as vigorously with these products as Ratiopharm before the merger. Given these commitments, and further to a consultation of the players on the market, the Commission concluded that the operation would not lead to any competition problems. (O.L./trans.fl)