EU To Review Behringwerke Armour Plasma Joint Venture

The European Commission is to review a projected worldwide joint venture in plasma and blood products involving Behringwerke AG and Armour Pharmaceuticals.

The Commission has said that the planned joint venture (Marketletter February 27) appears to conflict with aspects of European Union merger rules, especially in dominant market position. Both companies would have equal shares in the venture and would bring current activity in the development, production and marketing of plasma products to the venture.

A decision to order an investigation into the project or to approve it has to come from the Commission within four weeks. The Behringwerke-Armour agreement is in the field of plasma proteins. Under the deal, both companies will contribute to the joint venture all of the assets of their respective plasma operations in exchange for a 50% equity interest each in the new entity. A priority of the project will be to increase the availability of innovative products through its enhanced capacity to invest in R&D.