AstraZeneca $39B Alexion Buy Hits UK Antitrust Roadblock

The agency wonders whether the transaction would hurt competition “within any market or markets in the United Kingdom,” it stated in a notice. 

The CMA is now soliciting public comments until June 3 to help with its evaluation and aims to reach a decision by July 21. If, at that time, the agency finds any reason to believe a “realistic prospect” of threats to competition, it may launch a more in-depth, phase 2 assessment that may last up to 24 weeks or even 32 weeks in special circumstances, according to the CMA rules.

For months, industry watchers have been watching for increased deal-making scrutiny from the US Federal Trade Commission (FTC). In March, the US antitrust authority launched a review of its current product-by-product approach to evaluating biopharma M&A. The FTC, now led by Democrats after last year’s election, stated a rise in mega deals such as those between Bristol Myers Squibb and Celgene could be contributing to high drug prices and anti-competitive behaviors such as pay-for-delay settlements.

However, the FTC last month blessed the Alexion takeover without raising any issues. Still, the FTC’s initiative includes a collaboration with competition authorities in other countries.

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