Mylan receives EU go-ahead to purchase Meda, with conditions

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Mylan receives EU go-ahead to purchase Meda, with conditions

Home/Pharma News | Posted 12/08/2016 0 Post your comment

The European Commission (EC) has approved the multi-billion dollar acquisition of Swedish specialty pharmaceutical company Meda by Mylan, one of the world’s largest generics and specialty pharmaceutical companies, subject to certain conditions.

US-based drug manufacturer Mylan announced its latest offer to acquire Sweden’s Meda – which ranked in the top 50 biggest pharmaceutical companies in 2014 – in February 2016 [1]. The deal is worth US$7.2 billion.

Meda manufactures generics and specialty drugs, specializing in respiratory, dermatology, and pain and inflammation therapeutics.

The Meda board of directors twice rejected Mylan’s attempts at takeover but this time recommended shareholders accept the deal, which was 92% higher than Meda’s closing price.

However, during the routine phase I assessment of the deal, European Union (EU) competition watchdogs raised concerns that the deal would reduce competition for several pharmaceutical products. The EC has a duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds, and to prevent any deals that would impede competition in the European Economic Area.

The EC assessed the effects of the proposed merger on drugs in a range of therapeutic areas, including markets for antibiotics, anticancer drugs and hormones, as well as nervous system, cardiac, respiratory and dermatological agents.

For the majority of cases, they had no concerns. However, for 15 markets where the two companies are in a particularly strong position and there are insufficient alternatives, the EU declared competition concerns. These included sales of drugs to treat rapid heartbeat (including propafenone and flecainide) in eight European countries, the antibiotic amoxicillin in Norway and the anti-inflammatory nabumetone in the UK. The full list of markets affected by the deal is available on the EC’s website.

The approval, which was announced in July 2016, is therefore conditional on the divestment of a number of Mylan and Meda’s businesses across Europe (in Austria, Belgium, Estonia, France, Luxembourg, Ireland, Italy, Norway, Portugal, Spain and the UK) including the relevant marketing authorizations, customer information and brands. More information on the decision can be found on the EU Competition website.

Sun Pharma looking to buy Sweden’s Meda

Reference
1. GaBI Online - Generics and Biosimilars Initiative. Mylan to acquire Swedish drugmaker Meda [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2016 Aug 12]. Available from: www.gabionline.net/Pharma-News/Mylan-to-acquire-Swedish-drugmaker-Meda

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Source: European Commission