- The European Commission (EC) has approved Dutch generics company Mylan's proposal to acquire Swedish company Meda, a prescription and over-the-counter generic drugmaker, as long as the company divests some assets, the regulator announced Wednesday.
- The commission determined the deal may create anti-competitive market conditions in nine metabolic areas and will require the companies to sell off some drugs in eleven European countries.
- Mylan has touted the highly complementary profile of the two companies in respiratory/allergy, dermatology and pain. The acquisition will also provide Mylan with access to various emerging markets where Meda operates including Asia, Russia, the Middle East and Mexico. Mylan already has a presence in India, Brazil, and Africa.
Mylan efforts to expand via acquisition have been unsuccessful in the past. Last September, the company's attempt to acquire Irish generics company Perrigo for $29 billion were scuttled, as Perrigo fought to protect its independence.
Now Mylan is on the brink of closing a $7.2 billion deal with Meda, a Swedish company with a solid generics portfolio. Although Meda's portfolio offers numerous synergies, the two companies have a long list of divestments to complete before they can seal the deal.
The European Commission determined the acquisition could create anti-competitive conditions in a wide range of therapeutic areas.
As a result, Mylan and Meda must divest products such as amoxicillin in Norway; diltiazem in Portugal; megestrol in Spain; nabumetone in the UK and other assets in Austria, Belgium, Estonia, France, Luxembourg, Ireland and Italy. Once the divestments are complete, Mylan should be able to proceed with expanding its presence into markets where Meda currently operates.