Pfizer gains EU antitrust approval for Hospira acqusition
- As part of finalizing the acquisition of Hospira in the E.U., Pfizer has had to make certain divestments to comply with antitrust regulations.
- As this $15.2 billion deal comes together, it will be a significant acquisition for Pfizer as it tries to elbow its way into the biosimilars market.
- This deal will boost Pfizer's portfolio of generic injectable drugs and biosimilars.
One of the most sigificant divestments that Pfizer was required to make in the EU market was to delay or discontinue production, manufacturing, or marketing of the biosimilar version of infliximab. However, Pfizer still has the right to produce and market biosimilar infliximab in some countries outside of the E.U.
In addition, Pfizer was required to divest certain generic injectables where there was evidence of too much control over the market. There are two major goals associated with the EU's antitrust provisions, and the guidance provided to Pfizer.
The first goal is to make sure that Pfizer (or any other company) is not able to corner the market for certain therapies, and in the process keep raise prices. In addition, regulators want to make sure that the Pfizer/Hospira merger does not stand in the way of R&D.
While Pfizer was forced to make certain concessions, it still stands to gain considerable leverage and enhoy new-found synergies once the acquistion is complete.