supply.
It is pertinent to mention here that new entry or expansion in relation to Meningococcal (ACWY) vaccine products requires substantial investment in research and development, which is evident from the fact that it took many years before a new entrant like Sanofi Pasteur could enter the relevant market in Pakistan. Moreover, the effectiveness of each vaccination programme differs in terms of age usage and duration of protection; therefore, it is important to have all meningococcal (ACWY) vaccinations available in the market.
Remedies/Conditions: After holding a hearing on the matter on February 20, 2015, by the CCP full bench chaired by Vadiyya Khalil, Chairperson, and including Dr Joseph Wilson, Mueen Batlay, Dr Shahzad Ansar, and Ikram Ul Haq Qureshi, members, CCP concluded the Phase II review and directed GSK to take the following measures: i. GSK will ensure reliable availability of its vaccine (Meneveo) in Pakistan.
ii GSK will divest its worldwide MenACWY vaccine business to a suitable purchaser, who will be an independent third-party vaccines supplier with the capability to maintain and continue to develop the divested business as a viable and active competitive product line, as committed by GSK to the European Commission on January 21, 2015.
iii.GSK will enter into an agreement with a third-party purchaser within a period of six months from the receipt of the EU clearance decision. An independent divesture trustee, who will be appointed by the European Commission, will have the mandate to sell the Divestment Business at no minimum price within another 6 months.
iv.The purchaser must have an established presence in distribution channels used in the vaccine business in Pakistan. The Commission will assess the effects of the transaction on the relevant market after one year from the date of the closing of the transaction under Section 11(13) of the Act.
The applicant was directed to file an update report with the registrar of the Commission every three months until the divestment is complete. The CCP issued its No Objection Certificate to GSK for the proposed acquisition on February 20, 2015, with the above structural remedies.
In another pre-merger application, the CCP approved the acquisition of the business relating to a portfolio of oncology products (excluding manufacturing) by Novartis AG (Novartis) from GlaxoSmithKline Plc (GSK). The transaction was taken to a Phase II review in early November 2014 and was concluded on February 9, 2015, the CCP concluded.