EU Commission clears Teva/Lonza JV

Under the European Union Merger Regulation, the European Commission has cleared the proposed creation of a joint venture to develop,  manufacture and market a portfolio of biosimilar drugs (copies of  compounds produced using biological processes), between drugmakers  Lonza of Switzerland and Teva Pharmaceutical Industries of Israel  (Marketletter January 26). The Commission concluded that the  transaction would not significantly impede effective competition within  the European Economic Area or any substantial part of it.

The Commission found that the proposed transaction would give rise to no  overlaps between the activities of the parent companies and that no  competition problems were likely to arise from overlaps between the JV  and Teva in the finished dose pharmaceutical products sector, as Teva  has reduced market shares in those where the JV will be active and a  number of competitors are presents. It also ruled out any competition  concerns due to vertical relationships between Lonza's contract  manufacturing activities - in which it recognized that the Swiss firm  is a relatively important player - and the JV's future downstream  products.