Arrow-Apotex deadline today

SUBMISSIONS to the Australian Competition and Consumer Commission’s informal enquiry into the proposed merger between Arrow Pharmaceuticals and Apotex (PD 10 Jul) must be lodged by 5pm AEST today.

The ACCC is seeking views on how the deal will impact competition, with stakeholders invited to comment on how closely Arrow and Apotex compete with each other in supplying prescription and OTC pharmaceuticals.

The Commission would also like to understand whether the price of prescription and OTC pharmaceuticals would be likely to increase as a result of the proposed merger, and whether the companies’ customers would have sufficient alternative sources of supply after the proposed merger.

Also in question is how easy it would be for existing competitors to expand, and/or new competitors to enter the market.

When the deal was announced in May the companies said it aimed to “create a sustainable platform for future growth and development,” with the merger said to create Australia’s largest generics business by both volume and revenue, with an estimated 50% market share.

The legal test applied by the ACCC in considering the proposed merger is in section 50 of the Competition and Consumer Act 2010 which “prohibits mergers that are likely to have the effect of substantially lessening competition in a market”.

The provisional date for announcement of the ACCC’s decision is 13 Sep 2018, and this may be either a final decision or the release of a Statement of Issues.

See registers.accc.gov.au.