The Australian Competition and Consumer Commission has accepted a court-enforceable undertaking from Pfizer Pty Ltd and Pfizer Overseas Inc to address anti-competitive concerns the Commission identified in relation to the acquisition of Pharmacia Corporation by Pfizer Inc. "The undertaking addresses the ACCC's concerns that the worldwide merger of the parties may result in a substantial lessening of competition in Australia in relation to certain products used by cattle breeders, veterinarians and farmers for the management of cattle reproduction", Acting Chairman Sitesh Bhojani said today. "In the absence of the divestiture post merger Pfizer would have enjoyed a veritable monopoly in relation to cattle progesterone delivery devices".
The undertaking, which requires Pfizer to divest its CueMate product, aims to preserve competition between two key products used for the treatment of non-cycling cows and synchronisation of the mating of multiple cows.
As part of its examination of the merger proposal the Commission conducted extensive market inquiries with a range of interested parties, as well as cooperating with overseas competition authorities. Given the companies' broad interests in a range of human pharmaceutical products and products used for animal healthcare the Commission analysed the impact of the merger on competition in a range of markets.
Whilst the Commission also had concerns in relation to the erectile dysfunction market the undertakings which have been given by the parties to the European Commission are considered sufficient to address the concerns for the Australian market. This involves the transfer of two products Pharmacia has in development: the dopamine D2 receptor (PNU-142774E) and Apomorphine hydrochloride nasal spray, which is being developed by Pharmacia in cooperation with Nastech Pharmaceutical Company, Inc.
"On the basis of the undertaking provided, therefore, the ACCC formed the view that it would not oppose the merger", Mr Bhojani said. The undertaking will appear on the ACCC's public register in due course.