Bureau permits merger of ID Biomedical and GlaxoSmithKline: No product overlap
Susan Hutton and Alexandra Stockwell
Canada's Competition Bureau recently released a Technical Backgrounder explaining its analysis of GlaxoSmithKline Inc.'s (GSK's) acquisition of ID Biomedical Corporation (IDB), both active in the development and marketing of vaccines. Interestingly, the transaction was classified as "complex," although ultimately the Bureau found that it would have little, if any, competitive impact as there was no product overlap. The Bureau may have treated the transaction with particular care due to its involvement with products essential to public health and safety, and in particular influenza vaccines. IDB supplies 75% of Canada's annual public requirements for influenza vaccines, and will do so until at least 2008, when one of its government contracts expires. The Bureau observed that, although an active producer of other vaccines and involved in vaccine development generally, GSK had never sold influenza vaccines in Canada, and that there will likely be a number of companies capable of bidding for Canadian influenza vaccine requirements when contracts come up for renewal. In addition, the Bureau noted that public health officials did not see the merger as endangering the security of supply of the vaccine for Canadians.
An important element in the Bureau's overall holding was its finding that there is no product overlap in Canada between GSK and IDB. Both companies have pipeline products aimed at certain respiratory ailments, as well as a Meningococcal strain and certain allergies. The Bureau was undeterred by this fact, however, as it said the products in question were years away from commercial viability and other pharmaceutical companies were also developing potential vaccines for the same diseases.
