Ex-post assessment of merger effects: the case of Pfizer and Pharmacia (2003)
AbstractThe paper studies the effects of the Pfizer and Pharmacia (2003) merger on competition in the Swiss pharmaceutical market and compares the assessment of the Swiss Competition Commission (COMCO) with the post-merger market developments. We find that the merger has had a miniscule impact on the Swiss pharmaceutical market. This has primarily to do with the fact that the product portfolios of both companies have shown no or only slight overlaps. In both cases of potential anticompetitive effects, the companies successfully proposed to divest some of their assets in order to prevent a further strengthening of their dominant position. The remedies included products in the development phase which were not available on the market at the time of the decision. In other markets in which either an overlapping of businesses of both companies existed or in which one of the merging entities held a dominant market position, no significant effects of the merger were noticed. This might have to do with both, existing price regulation in the Swiss drug industry and changes in Pfizer's product portfolio following the merger. Furthermore, with respect to other potentially interesting market characteristics such as investment behaviour, R&D, sales or employment, available data on global company level does not allow an isolation of the possible effects of the merger. --
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 11-035.
Date of creation: 2011
Date of revision:
mergers; ex-post evaluation; pharmaceutical markets;
Other versions of this item:
- Nina Leheyda & Patrick Beschorner & Kai Huschelrath, 2011. "Ex-Post Assessment Of Merger Effects: The Case Of Pfizer And Pharmacia (2003)," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 0(1), pages 18-47, June.
- K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
- L42 - Industrial Organization - - Antitrust Issues and Policies - - - Vertical Restraints; Resale Price Maintenance; Quantity Discounts
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-05-30 (All new papers)
- NEP-COM-2011-05-30 (Industrial Competition)
- NEP-HIS-2011-05-30 (Business, Economic & Financial History)
- NEP-HME-2011-05-30 (Heterodox Microeconomics)
- NEP-IND-2011-05-30 (Industrial Organization)
- NEP-LAW-2011-05-30 (Law & Economics)
- NEP-REG-2011-05-30 (Regulation)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.