EU says Johnson & Johnson's deal for Takeda patch may harm competition
Reuters
Published Mar 25, 2020 11:14AM ET
Updated Mar 25, 2020 12:11PM ET
By Foo Yun Chee
BRUSSELS (Reuters) - EU antitrust regulators have opened a full investigation into Johnson & Johnson's acquisition of Takeda Pharmaceutical's surgical patch product TachoSil, concerned that the deal could lead to reduced choice and higher prices for customers.
Takeda, (T:4502) Japan's biggest drugmaker, announced the sale of TachoSil, a surgical patch for bleeding control, to U.S. giant Johnson & Johnson's (N:JNJ) subsidiary Ethicon for $400 million last May.
The European Commission said a preliminary investigation found cause for concern because TachoSil is the market leader in Europe. Johnson & Johnson is also a major maker of surgical patches globally although it does not sell such dual patches in Europe.
The EU competition enforcer said high development costs meant rivals would find it difficult to enter the market.
"In this concentrated space, we need to carefully assess whether the proposed merger would lead to reduced choice for surgeons and patients, to higher prices for our health services, or to slower development of alternative solutions to manage problematic bleeding," European Competition Commissioner Margrethe Vestager said in a statement.
The Commission set an Aug. 10 deadline for its decision on the deal.
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Written By: Reuters
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