Mergers: Commission waives the commitments made by Takeda to obtain clearance of its acquisition of Shire

pharma

(Credit: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has waived, under the EU Merger Regulation, the commitments made by Takeda to obtain clearance of its acquisition of Shire.

The Commission approved the acquisition of Shire by Takeda on 20 November 2018, subject to the divestment of a biologic drug under development by Shire to treat inflammatory bowel diseases (“IBD”), namely SHP 647.

IBD is a lifelong autoimmune disease that involve inflammation of the digestive tract. Biologic drugs are typically prescribed after the failure of conventional therapies, such as corticosteroids and immunosuppressants.

The Commission’s investigation

Following a number of circumstances that took place during the divestiture process, Takeda submitted a reasoned request to waive the commitments in their entirety.

Upon receipt of the request by Takeda to waive the commitments, the Commission has initiated a market investigation to determine whether a waiver is justified in light of the changed market conditions and developments.

The Commission’s investigation revealed that several permanent, significant and unforeseeable developments took place during the divestiture process, affecting both the evolution of the competitive landscape in IBD treatments and the development of Shire’s pipeline drug. In particular, during the divestiture process: (i) new promising drugs have emerged, which are expected to have a better efficacy and safety profile than the ones of Takeda’s and Shire’s drugs; (ii) some studies on SHP 647 yielded negative results; and (iii) the management of the divestment business experienced unforeseeable difficulties in recruiting patients for the clinical trials of SHP 647. These developments have negatively impacted the profile of SHP 647 and timeline with longer development duration, and severely impaired its prospects.

On this basis, the Commission concluded that the combination of the above developments amounted to exceptional circumstances so that the divestment of SHP 647 was no longer necessary to render Takeda’s acquisition of Shire compatible with the internal market.

As a result, the Commission has decided to waive the commitments submitted by Takeda in November 2018, in their entirety.

Companies involved

Takeda Pharmaceutical Company Limited, headquartered in Japan, is a global pharmaceutical company active in four main therapeutic areas: oncology, gastroenterology, neuroscience and vaccines.

Shire plc (now part of Takeda), headquartered in Ireland, is a global biopharmaceutical company, which specialises in developing treatments for rare diseases across a range of therapeutic areas including immunology, haematology, neuroscience, gastroenterology and genetic diseases.

Merger control rules and procedures

The transaction was notified to the Commission on 28 September 2018 and was approved, under the EU Merger Regulation by the Commission on 20 November 2018.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede effective competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II). This deadline is extended to 35 working days in cases where remedies are submitted by the parties, such as in this case.

More information will be available on the Commission’s competition website, in the public case register under the case number M.8955.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

What the global Internet’s stakeholders can learn from Europe’s new data law

OECD Steel Committee concerned about excess capacity in steel sector

This is how many people are forcibly displaced worldwide

Heart attacks and strokes are more common on high pollution days, data shows

Fisherwomen of Lake Chad show optimism in face of multiple challenges

Employment and Social Developments in Europe: 2018 review confirms positive trends but highlights challenges, in particular linked to automation and digitalisation

EU confronts environmental threats as global leaders attempt to revive the global sentiment at NYC climate week

Reforms in Latvia must result in stronger enforcement to tackle foreign bribery and subsequent money laundering risks

Bacterial resistance: the significant worldwide problem

5 times people predicted the future and got it really wrong

Commission approves emergency measures to protect eastern Baltic cod

The world wide web is 30 years old. What better time to fight for its future?

17 ways technology could change the world by 2025

COVID-19: Stopping the rise in domestic violence during lockdown

Several crises in one: what effects will COVID-19 have on the global risk landscape?

Over 85% of European bathing sites rated as excellent for water quality

Syria: UN chief warns Idlib offensive may set off ‘humanitarian catastrophe’

How fungi could save the world

Parliament closes legal loophole to stop excessive Ukrainian chicken imports

‘Don’t forget Madagascar’s children’, UN appeals for long-term help as emergency worsens

UN Mission in Afghanistan gravely concerned about ill-treatment of prisoners by Taliban, following first-hand testimony

Parliament seals ban on throwaway plastics by 2021

Gender equality and medicine in the 21st century: an equity unachieved

The staggering loss of the Arctic Ocean’s oldest sea ice shown in time-lapse

How digital entrepreneurs will help shape the world after the COVID-19 pandemic

“None of our member states has the dimension to compete with China and the US, not even Germany!”, Head of EUREKA Pedro Nunes on another Sting Exclusive

Guterres appeals for ‘maximum restraint’ over Jammu and Kashmir, as tensions rise

Cyber attacks are shutting down countries, cities and companies. Here’s how to stop them

How much more political is the new EU leadership? Does this include personal bend?

UN recognises role of sport in achieving sustainable development

Palliative care and Universal Health Coverage: Do not leave those suffering behind

Eurozone stagnates after exporting its recession to trading partners

Brussels to point the finger to Washington for lack of commitment over TTIP

This is why mental health should be a political priority

This ceramic ink can 3D-print bones directly into a patient’s body. Here’s how

Yemen: Tackling the world’s largest humanitarian crisis

Microplastic and nanoplastic pollution threatens our enviroment. How should we respond?

Humanitarian action: New outlook for EU’s global aid delivery challenged by COVID-19

Parliament votes for €1 billion in aid to Ukraine

Mental health apps: Help is just within a pocket reach

We spend half our time at work in meetings – and that’s not necessarily a bad thing

GSMA Announces Latest Event Updates for 2018 “Mobile World Congress Americas, in Partnership with CTIA”

This interactive map could help you discover a new species

Bullheaded Madrid authorities confront Catalonia with force

Coronavirus: rescEU masks delivered to Spain, Italy and Croatia

“Sorry mom it’s not our day”: the true refugee story of a young doctor and his family forced to flee their home

Australia urged to evacuate offshore detainees amid widespread, acute mental distress

Families deserve answers when loved ones go missing in conflict: Security Council adopts historic resolution

Parliament condemns all forms of racism, hate and violence and calls for action

70 years after the Universal Declaration of Human Rights, this is why we need dignity more than ever

The future of work ‘with social justice for all’ tops agenda of centenary UN Labour conference

New seat projections for the next European Parliament EU28

IPCC reports devastating climate consequences; US in denial while EU does not fully support the 2050 net zero emissions target

Here’s why leaders need to care about mental health

Youth Forum welcomes European Commission proposal to speed up financing for youth employment

Commission sets moderate greenhouse gas reduction targets for 2030

The financial world upside-down: debt failure closer

3 ways business leaders can build digital trust

MEPs take stock of the EU’s foreign, security and defence policy priorities

Facebook engineer working at the company’s HQ, Menlo Park, CA (Copyright: Facebook Inc., Source: Facebook Inc.’s website, newsroom)

Facebook goes under formal EU privacy scrutiny after latest massive data breach

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s