ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the acquisition of two pharmaceutical products of M/s Eisai Co Ltd, a Tokyo-based firm, by M/s Hilton Pharma Pvt ltd.

The proposed transaction entails acquisition of two pharmaceutical products i.e. “Methycobal and Myonal” including their trademarks, know-how and records in terms of assets consequent to an Asset Purchase Agreement (APA). Whereas, APA was signed for the purpose of manufacturing and commercializing the products in Pakistan.

Hilton Pharma, since its incorporation in 1989, is involved in the business of manufacturing and distribution of medicinal products in Pakistan. The acquirer is also duly authorized by Drug Regulatory Authority of Pakistan to manufacture pharmaceutical products. Meanwhile, Eisai Co ltd, a Japanese pharmaceutical company headquartered in Tokyo, is operating globally in terms of R&D, manufacturing and marketing, with a strong focus on prescription medicines.

The CCP’s Phase-I competition assessment identified “Pharmaceutical – Myonal and Methycobal” as the relevant product market. The assessment revealed that pursuant to a License Agreement Hilton Pharma is already manufacturing and selling the aforementioned products but that agreement will be terminated after the completion of this transaction. Moreover, Hilton Pharma has a nominal market share which will remain unchanged after the transaction. Ultimately, the proposed acquisition will not result in Hilton Pharma gaining dominance in the relevant market.

This move is expected to bring enhanced expertise to boost local drug production in Pakistan. By clearing this acquisition, the CCP aims to cultivate self-reliance thus ensuring advanced but domestic choices in pharma sector within the country.

Copyright Business Recorder, 2024