The Philippine Competition Commission said it approved the acquisition by GlaxoSmithKline Consumer Healthcare Holdings Ltd. of Pfizer Inc.’s Consumer Healthcare Business involving over-the-counter medicine portfolio.
PCC said in a decision dated June 27 that it upheld the transaction upon learning that it would not likely lead to the substantial lessening of competition in the relevant markets of pediatric and adult cough medicines; pediatric painkillers; and vitamins.
The merger between GSK and Pfizer’s over-the-counter portfolio reveals overlaps between GSK and Pfizer brands.
PCC said it approved the transaction despite the combined market power of both firms which would have limited incentive to increase prices in the local market. This is due to the finding that customers’ brand loyalty to medicines they trust spelled limited diversion between GSK and Pfizer drugs.
It said the merged firm would have limited incentive to reduce innovation of new products because there are other market players that exert competitive pressure on the merged firm.