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EUROPEAN COMMISSION - PRESS RELEASE
Mergers: Commission approves the acquisition of
Cephalon by Teva, subject to conditions
Brussels, 14 October 2011 - The European Commission has cleared under the EU
Merger Regulation the proposed acquisition of US-based pharmaceutical company
Cephalon by the generic pharmaceutical company Teva of Israel. The decision is
conditional upon the divestment of Cephalon's generic version of its "Provigil" drug.
Provigil is indicated for the treatment of excessive daytime sleepiness associated
with narcolepsy. Teva has also developed a generic version of the drug. In light of
the commitments, the Commission concluded that the transaction does not raise
competition concerns.
The Commission examined the effects of the proposed transaction on the market
for drugs based on Modafinil, the main active pharmaceutical ingredient of Provigil
and the generic version developed by Teva as well as the one Cephalon has in the
pipeline. The Commission was concerned that the proposed transaction, as initially
notified, would have significantly reduced generic competition in the markets where
Modafinil is sold.
The Commission's investigation showed that the divestment of Cephalon's generic
pipeline Modafinil product, as offered by the company, will allow a competitor to
emerge and compete effectively with the merged entity.
The investigation did not reveal any other significant modification to the competitive
situation and dynamics of other relevant markets, as a number of credible and
significant competitors will d continue to exercise a competitive constraint on the
merged entity.
The Commission therefore concluded that the proposed transaction, as modified by
the commitment, would not significantly impede effective competition in the
European Economic Area (EEA)1 or a substantial part of it.
Teva is the world’s largest generic pharmaceutical company. Cephalon is a
primarily originator company, but also supplies generic pharmaceuticals in the EEA.
The transaction was notified to the Commission on 25 August 2011.
Merger control rules and procedures
The Commission, in 1989, was given the power to assess mergers and acquisitions
involving companies with a turnover above certain thresholds (see Article 1 of the
Merger Regulation). Its duty is to prevent concentrations that would significantly
impede effective competition in the EEA or any substantial part of it.
1
The EU plus Iceland, Liechtenstein and Norway.
IP/11/1193
The vast majority of mergers do not pose competition problems and are cleared
after a routine review. From the moment a transaction is notified, the Commission
generally has a total of 25 working days to decide whether to grant approval (Phase
I) or to start an in-depth investigation (Phase II).
A non-confidential version of today's decision will be available at:
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=2_M_6258
Contacts :
Amelia Torres (+32 2 295 46 29)
Marisa Gonzalez Iglesias (+32 2 295 19 25)
2