Anti-trust regulator orders Bayer Korea to sell oral contraceptive business acquired through Merck deal

South Korea's anti-trust regulator this week ordered the local subsidiary of German pharma major Bayer (BAYN: DE) to sell off its oral contraceptive pill operation that was acquired when its parent bought Merck & Co (NYSE: MRK) over-the- counter medicines business, citing conflict with the country's fair trade rules, reported the Korea Herald.

While overall approving Bayer’s$14.2 billion acquisition of the Merck consumer operation (The Pharma Letter May 6, 2014), the Fair Trade Commission (FTC) said it requires Bayer Korea to dispose of its assets and rights related to all Mercilon tablet business in the country.

Combined OCs would have an 82% market share

Mercilon has a dominant 43% share in the local OTC oral contraceptive drug market with Bayer's Myvlar, Minivlar, Meliane and Triquilar drugs accounting for 39%. Combined, these five drugs control 82% of the market.

"The decision was made because Bayer's dominance in a market that is already controlled by imported drugs could be detrimental to the interest of consumers," the FTC said, adding that the measure could pre-empt any moves by Bayer to increase prices for its drugs.