The deal, announced in July, involves 12 brands of drugs in Brazil, Mexico and Colombia, for $190.3 million.
Brazil's General Superintendence of the Administrative Council for Economic Defense (CADE) approved the acquisition by Hypera of assets under 12 drug brands, with and without prescription, indicated for treatment in several segments of personal health care, belonging to the Sanofi Medley Pharmaceuticals group. The order authorizing the operation was published in the Official Gazette on the 14th of March.
Hypera is a Brazilian company that operates in important segments of the pharmaceutical sector, such as prescription drugs, health care products, similar and generic drugs and dermocosmetics. Sanofi is a member of the Sanofi Group, present in more than 100 countries with operations in the areas of special care, human vaccines, medicine in general and consumer healthcare.
In its opinion, CADE pointed out that the operation results in low market share in most of the analyzed sectors. Only with regard to some target products in the business, such as pediatric analgesics, for example, it was verified that the transfer of assets to Hypera generates high market concentration.
For these cases, however, the Superintendence observed the existence, among other issues, of a considerable number of drugs capable of competing in the sector and of relevant competing brands, and for these reasons, concluded that the company would not exercise market power. Thus, the operation was approved without restrictions.
If CADE's Tribunal does not invoke the merger for analysis or there is no appeal by an interested third party, within 15 days, the Superintendence's decision will be final and the transaction will be definitively approved by the antitrust agency.
