REG - Competition and Mkts - Merger Update: Theramex/Viatris

ViatrisAnnouncement

04/04/2024 12:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240404:nRSD3409Ja&default-theme=true

RNS Number : 3409J  Competition and Markets Authority  04 April 2024

FOR IMMEDIATE RELEASE - 11h00 THURSDAY 4 APRIL

Pharma deal could reduce choice and lead to higher prices for HRT treatments

Following its Phase 1 investigation, the CMA has found that Theramex's
proposed purchase of Femoston and Duphaston could reduce competition and
choice for hormone replacement therapy treatments

Theramex is a global pharmaceutical company specialising in women's health
products, such as hormone replacement therapy (HRT) and fertility treatments.
Viatris, another global healthcare company, makes products across a broad
range of therapeutic areas. Last year, Theramex announced it would buy the
European rights to the Duphaston and Femoston HRT product ranges from Viatris.

During its initial Phase 1 review, the CMA identified that Theramex is one of
the largest suppliers in the systemic HRT market in the UK. It supplies
oestrogen patches and combined oestrogen and progestogen patches and pills.
Femoston offers an important competitive alternative to Theramex's products.

 

The CMA is concerned that the deal could reduce competition in this important
market, the cost of which is often covered by the NHS, by reducing incentives
to bring new products to the market and improve and promote existing products.
The reduction of HRT alternatives in a market that is already highly
concentrated could reduce choice and also lead to potential price increases,
as well as raising concerns about the security of supply.

The CMA has also identified concerns that the merger could also lead to a loss
of future competition on the UK market for dydrogesterone, a progestogen-only
product. The CMA has found evidence to suggest that without the merger, there
may have been greater competition to bring dydrogesterone products to the UK
market, and more new products may have been introduced.

Sorcha O'Carroll, Senior Director for Mergers at the CMA, said:

"HRT plays a critical role in treating symptoms which impact the everyday
lives of millions of women.

"We're concerned this deal between Theramex and Viatris - which transfers
control of Femoston and Duphaston in the UK and Europe - may reduce
competition and lead to higher prices, as well as preventing new treatments
being brought to market.

"Our door is now open to the firms to offer solutions to our concerns,
otherwise this case will proceed to a more in-depth investigation."

Both Theramex and Viatris have 5 working days to respond with meaningful
solutions to the CMA, otherwise the deal will be referred to a more in-depth
Phase 2 investigation.

More information can be found on the Theramex / Viatris case page
(https://www.gov.uk/cma-cases/theramex-slash-european-rights-to-viatris-femoston-and-duphaston-products)
.

Notes to editors:

1.   Theramex is headquartered in the UK. Viatris is based in the United
States.

2.   Phase 2 investigations last 24 weeks (extendable by up to 8 weeks in
certain circumstances) and are led by an independent panel of experts.

3.   For media enquiries, contact the CMA press office on 020 3738 6460 or
press@cma.gov.uk (mailto:press@cma.gov.uk) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MERUSSKRSBUSRRR