European Commission (Commission) has initiated an in-depth investigation for acquisition of Tachosil by Johnson&Johnson, based on competition concerns that the acquisition may reduce potential competition and innovation in the supply of dual haemostatic patches.
Johnson&Johnson is the parent company of a global group active in pharmaceutical products, medical devices and consumer health products, also one of the leading manufacturers of haemostats in European Economic Area (EEA). Currently, Johnson&Johnson does not sell dual haemostatic patches in the EEA and UK. As for Tachosil is solely controller by Takeda group and currently dominated the market of dual haemostatic patches.
The Commission found that dual haemostatic patches constitute a distinct product market, which is currently dominated by Tachosil, and the market is characterized by high entry barriers such as significant development costs and strong brand loyalty. The Commission raised following competition concerns:
The Commission indicated that Johson&Johnson would have strong incentives to enter the market for dual haemostatic patches in the absence of the transaction and the transaction may result in less choice, higher prices and reduced incentives to innovate. Based on these grounds, the Commission has initiated an in-depth investigation for the transaction and Johnson & Johnson has decided not to submit commitments to address the Commission's preliminary concerns. The Commission now has 90 working days for taking a decision about the in-depth investigation, until 10 August 2020.
(European Commission Decision – 25.03.2020)