Commission gives clearance to Pfizer/Hospira merger

Media release

Issued 16 July 2015
Release no. 5

Commission gives clearance to Pfizer/Hospira merger

The Commerce Commission has given clearance for Pfizer Inc. to acquire all of the shares of Hospira Inc. Both parties are active in the development and supply of a range of pharmaceutical products.

The Commission assessed whether Pfizer and Hospira were close competitors in the limited instances where both compete to supply the same type of small molecule medicines. The Commission also considered whether or not Pfizer or Hospira had medicines in development that would compete against each other without the merger.

Commerce Commission Chair Dr Mark Berry said that the Commission is satisfied the merger will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets.

“Our investigation found that Pfizer and Hospira were not particularly close competitors for the supply of the overlapping small molecule drugs, and that sufficient competition would remain in the market with the merger,” Dr Berry said.

“We also found that while both Pfizer and Hospira have new biosimilar drugs in development, there are a number of other pharmaceutical companies developing the same drugs which are likely to compete vigorously with the merged entity.”

A public version of the written reasons for the decision will be available shortly on the Clearance Register.

Background

The merger forms part of a global merger that is currently being considered by several other competition authorities.

Pfizer is a global pharmaceutical company with a focus on the research and development of new pharmaceutical products. In New Zealand, Pfizer sells a range of consumer and prescription pharmaceuticals and operates through its subsidiaries Pfizer New Zealand Limited and Pfizer PFE.

Hospira is a global company which focuses on the production and distribution of injectable pharmaceuticals and medication delivery devices. In New Zealand, Hospira operates through its subsidiary Hospira NZ Limited.

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