Biovail Laboratories International SRL - proposed acquisition of certain products from Aspen Pharmacare Holdings Limited and Aspen Asia Pacific Pty Ltd

Summary

On 16 December 2010, the ACCC announced its decision not to oppose the proposed acquisition of the pharmaceuticals division of Sigma Pharmaceuticals Limited by Aspen Pharmacare Holdings Limited, subject to a s87B undertaking offered by Aspen.
The undertaking addressed competition concerns identified by the ACCC in national markets for the supply of prednisone, prednisolone and penicillin V.
The undertaking required Aspen to divest certain products to a purchaser approved by the ACCC. Biovail Laboratories International SRL proposed to acquire the divestiture products from Aspen.

Market definition

The ACCC considered the proposed acquisition in the context of national markets for the supply of:
- prednisone and prednisolone;
- phenoxymethylpenicillin (penicillin V).

Competition analysis

The ACCC formed the view that Biovail satisfied the proposed purchaser criteria in clause 7.19 of the undertaking, including that the divestiture of the products to Biovail would address the ACCC's competition concerns in the relevant markets, and that the divestiture products would be likely to remain viable and competitive in the long term under Biovail's ownership.