On Thursday 19 October, the European Commission announced its unconditional approval of the acquisition of the US biotechnology company Seagen, which develops and markets targeted cancer therapies known as “antibody-drug conjugates”, by the US pharmaceutical company Pfizer. By acquiring sole control of Seagen through a share purchase, Pfizer aims to diversify its portfolio and strengthen its innovative medicines development business.
The transaction was notified to the Commission on 14 September 2023. Only in Germany, Austria and Cyprus was it subject to the notification requirement.
Following an investigation, the Commission concluded that the products marketed by Seagen and Pfizer and their products in development overlap in the treatment of several types of cancer, but that the proposed merger would not affect competition.
In particular, the acquisition would not result in the discontinuation, postponement or redirection of research lines or products under development. In the Commission’s view, the activities of the two companies are aimed at different types of patient and the treatments under research or development operate differently.
Furthermore, the European Commission believes that this would not lead to a loss of innovation. The Commission considered that the oncology sector, as well as the more limited antibody-drug conjugate sector, were structured around a large number of players carrying out research and development activities.
Finally, the Commission considered that it was unlikely that the merger would have a negative impact on prices in the market concerned, as the two companies’ offerings were sufficiently different and complementary and competition in the market was sufficiently effective.
Link to case study: https://aeur.eu/f/96k (Original version in French by Émilie Vanderhulst)