Teva to sell two products to resolve competition concerns following its acquisition of Allergan's generic pharmaceuticals business
April 4, 2016 — OTTAWA, ON — Competition Bureau
An agreement has been reached to address competition concerns related to the proposed acquisition of Allergan plc’s generic pharmaceuticals business by Teva Pharmaceutical Industries Limited, the Competition Bureau announced today.
The consent agreement with the Bureau requires Teva to sell either its own or Allergan’s Canadian assets related to two pharmaceutical products:
- tobramycin inhalation solution (used for the management of cystic fibrosis in patients with certain chronic pulmonary infections); and
- buprenorphine/naloxone oral tablets (used for substitution treatment in adult opioid drug dependence).
Following its review of the proposed transaction, the Bureau concluded that it would likely have resulted in a substantial lessening or prevention of competition for the supply of those two pharmaceutical products in Canada. The Bureau is confident that the implementation of this consent agreement will adequately resolve its concerns.
Under the agreement, the Commissioner of Competition has the sole discretion to approve one or more buyers for these products and will do so only if he concludes that the buyer(s) will provide effective competition in Canada.
In conducting its review, the Bureau cooperated with its international counterparts, including the United States Federal Trade Commission and the European Commission. The Bureau also conducted interviews with numerous stakeholders, including drug formularies, hospital procurement personnel, group purchasing organizations, and competitors; and coordinated extensively with Health Canada.
- Teva is based in Israel, while Allergan is based in Ireland.
- Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.
A copy of the consent agreement is available on the Competition Tribunal website.
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