Mylan on track to acquire Abbott generics and expand role in women’s health

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Mylan on track to acquire Abbott generics and expand role in women’s health

INICIO/Noticias Farmacéuticas | Posted 13/02/2015 0 Post your comment

The European Commission (EC) has approved Mylan’s acquisition of Abbott Laboratories' Non-US Developed Markets Specialty and Branded Generics Business (Abbott EPD-DM), subject to conditions. US-based generics manufacturer Mylan will have to sell off a number of its businesses in France, Germany, Ireland, Italy and UK in order to satisfy European Union merger regulations.

Abbott EPD-DM is a Swiss-based manufacturer focused on distributing branded ex-originator products with expired patents and with internal production capabilities in Canada, Europe and Japan.

The EC was initially concerned that Mylan’s acquisition would have reduced competition on the market for several medicines [1]. The effects of the acquisition on competition in five therapeutic areas in particular were examined: cardio-metabolic, gastro, anti-infective/respiratory, central nervous system/pain, and women’s and men’s health.

The markets where the EC identified potential competition concerns were those for mebeverine in Germany and the UK, pygeum africanum in France, betahistine in Ireland, and delorazepam in Italy.

As a result, Mylan has agreed to divest its local businesses in the concerned markets, including the relevant marketing authorizations, customer information and supply contracts. The EC’s approval is conditional upon full compliance with these commitments.

According to reports, Mylan agreed to buy Abbott EPD-DM back in July 2014 [1] in a US$5.3 billion deal that will improve its product line and cut its tax bill. Mylan expects the transaction to close in the first quarter of 2015.

Days after news of the EC approval, Mylan announced that it would acquire several female healthcare businesses from Famy Care, a specialty women’s healthcare company with global leadership in generic oral contraceptive products for US$750 million in cash plus additional contingent payments of up to US$50 million.

In a statement, Mylan said that this latest acquisition would complement its pending acquisition of Abbott EPD-DM, which also includes a women’s healthcare portfolio and sales and marketing capabilities.

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Reference
1. GaBI Online - Generics and Biosimilars Initiative. Generics deals for Mylan, Pfizer and Sun Pharma [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2015 Feb 13]. Available from: www.gabionline.net/Pharma-News/Generics-deals-for-Mylan-Pfizer-and-Sun-Pharma

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Source: Europa, Mylan, Reuters