Notice given by Ordain Health Care Global Private Limited
Case brief
What is this about?
The Competition Commission of India approved the acquisition of Alkem Laboratories' fertility division by Ordain Health Care Global Private Limited. The Commission found no substantial market overlap, vertical foreclosure risks, or appreciable adverse effects on competition following its assessment of the relevant documents.
What did the court decide?
Approval of the proposed combination under Section 31(1) of the Competition Act, 2002.
What the court decided
Fair Competition For Greater Good
COMPETITION COMMISSION OF INDIA
(Combination Registration No. C-2015/03/259)
24.04.2015
Notice u/s 6 (2) of the Competition Act, 2002 given by Ordain Health Care Global Private Limited
Order under Section 31(1) of the Competition Act, 2002
- On 23.03.2015, the Competition Commission of India (“ Commission ”) received a notice under sub-section (2) of Section 6 of the Competition Act, 2002 (“ Act ”) given by Ordain Health Care Global Private Limited (“ Ordain ” or the “ Acquirer ”). The notice was filed with the Commission pursuant to the execution of an Asset Purchase Agreement ( “APA” ) between Ordain and Alkem Laboratories Limited ( “Alkem” ) on 26.02.2015.
- The proposed combination relates to the acquisition of fertility drugs division of Alkem ( “Fertica Business” ) by Ordain pursuant to the APA. As per the information given in the notice and other documents on record, the Fertica Business comprises of manufacturing, marketing and distribution of certain hormonal and nutritional pharmaceutical products for treating male and female infertility.
- In terms of Regulation 14 of Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (“ Combination Regulations ”), vide letter dated 01.04.2015, the Acquirer was required to provide certain information/document(s) by 07.04.2015, the reply to which was accordingly submitted by the Acquirer.
Issues for consideration
3 issues framed by the court
Whether the proposed acquisition of Alkem's fertility drugs division by Ordain is likely to cause an appreciable adverse effect on competition (AAEC).
Whether the proposed horizontal and vertical combinations warrant regulatory vetting under the Competition Act, 2002.
Whether the lack of overlap at molecule and therapeutic levels supports approval despite minor product substitutability.
Parties & counsel
- petitioner
Compition Commission of India
- applicant
Ordain Health Care Global Private Limited
Case details
As recorded by the court registry
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