Canadian competition authority calls for Teva divestments to complete Ratiopharm acquisition

The Competition Bureau in Canada has reached an agreement with Israeli generics giant Teva Pharmaceutical Industries and the Merckle Group (carrying on business as Ratiopharm), requiring divestitures of certain assets and associated licences of certain dosage forms of acetaminophen oxycodone tablets and morphine sulfate sustained-release tablets in Canada.

The Bureau concluded that the merger between the said companies would likely lead to a substantial reduction of competition in the Canadian market, so the parties are required to sell all the assets and associated licenses of either Teva or German firm Ratiopharm, which was acquired for $4.95 billion earlier this year (The Pharma Letter March 19) relating to the sale and supply of these products in Canada.

Teva said it has agreed to the terms and that it is pleased with the outcome which will allow it to fully realize the expected benefits of this merger in Canada.