Citi Pharma Gets Approval to Acquire Another Pharmaceutical Company

Citi Pharma Limited (PSX: CPHL) has received regulatory approval to acquire 100 percent of Pakheim International Pharma, making the pharmaceutical firm a wholly owned subsidiary of Citi Pharma.

Key points

• The Competition Commission of Pakistan (CCP) approved the transaction after reviewing its potential impact on competition under the Competition Act, 2010.
• The CCP additionally examined the relationship between Citi Pharma's production of active pharmaceutical ingredients (APIs) and Pakheim's apply of these ingredients to manufacture medicines.
• The regulator discovered that Pakheim had not purchased any APIs from Citi Pharma during the previous two years.
• Pakheim International Pharma is a privately held firm engaged in manufacturing and selling pharmaceutical products.
• As Pakheim has a limited market presence, the regulator discovered that the acquisition would not significantly affect competition in Pakistan's pharmaceutical market.

For context, the Competition Commission of Pakistan (CCP) approved the transaction after reviewing its potential impact on competition under the Competition Act, 2010. Lotte Chemical Allowed to Purchase Engro Polymer Stake.

Notably, the two firms overlap in three product categories: antibiotic formulations, painkiller formulations and anti-diabetic medicines. Nevertheless, the CCP stated the overlap was insignificant since Pakheim holds a negligible market share.

In practice, the firms do not overlap in the anti-ulcer and anti-allergic medicine segments, according to the commission's assessment.

For context, the CCP additionally examined the relationship between Citi Pharma's production of active pharmaceutical ingredients (APIs) and Pakheim's apply of these ingredients to manufacture medicines.

Notably, the regulator discovered that Pakheim had not purchased any APIs from Citi Pharma during the previous two years. It concluded that the transaction would not create significant competition reservations.

For context, the commission remarked the acquisition would not create barriers for new entrants, restrict existing competitors or establish a dominant market position.

Citi Pharma is a listed pharmaceutical firm involved in manufacturing and selling APIs, pharmaceutical formulations, medical chemicals, botanical products and nutraceuticals.

Pakheim International Pharma is a privately held firm engaged in manufacturing and selling pharmaceutical products. Stay Connected with ProPakistani.

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Taken together, the developments around citi Pharma Gets Approval to Acquire Another Pharmaceutical Company point to a situation that is still moving, and the coming days should bring more clarity.