Mylan-Abbott deal gets CCI green signal.

Global drug majors Mylan and Abbott's proposed deal in the pharmaceutical products segment has received the green signal from the Competition Commission of India (CCI).

Under the deal, Abbott Laboratories' Established Pharmaceuticals Products (EPP) segment would be transferred to the Netherlands-based New Moon BV - a private limited liability company set up by Mylan for the proposed combination.

Healthcare major Abbott's EPP segment includes branded generics and speciality pharmaceuticals products business of Abbott in Europe, Japan, Australia, New Zealand and Canada.

In an order released recently, the Competition Commission of India (CCI) said that 'the proposed combination is not likely to have an appreciable adverse effect on competition in India'.

The fair trade regulator observed that 'there is horizontal overlap' between the pharmaceutical products of Mylan and Abbott in India with respect to certain molecules.

'However, it is observed that in all of the...overlapping molecules, the combined market share of Mylan and Abbott is between 6 and 10 per cent and the incremental market share is between (0-5) per cent,' the CCI said.

'Accordingly, it is observed that the horizontal overlap between the pharmaceutical products of Mylan and Abbott in India is insignificant to raise any competition concern in India,' it added.

Further, the CCI, among others, also noted that 'there is no vertical relationship between the Abbott and Mylan in India'.

As per the details given in the order, in consideration for transfer of EPP segment, Abbott was to acquire about 21 per cent stake in New Moon.

HBL