Equine Flu Vaccine Market Concentrations -- in Europe

As part of Schering-Plough's November 2007 acquisition of Organon (and Intervet), the ECC required divestitures of a slew of animal health product lines. It is exceedingly difficult to track which concerns bought which product lines, post 2007, due to the Organon (Intervet) acquisition. However, a very helpful commenter has indicated that Pfizer likely bought some of Schering-Plough's 2007 positions in the European equine flu vaccines marketplace. This would seem to be confirmed as to the United Kindgom, here. [Recall here, that Sanofi-Aventis is buying Merial, from Merck, and then receiving a "call" option -- to buy all of Intervet, post the Schering-Plough/Merck merger.] With me so far? Good.

We know Pfizer bought Schering-Plough's position in the equine influenza vaccine markets (the Equip F, Equip T and Equip FT lines -- Schedule 3 of the 208 page PDF ECC filed in 2007) in the United Kingdom, and elsewhere in Europe. Thus, we may safely simply substitute Pfizer for Schering-Plough, from the Organon ECC filings of 2007 -- and that will yield some "Kentucky windage" as to where things now stand. To be clear, the table below was derived by substituting Pfizer for Schering-Plough, on Page 27 of this ECC October 2007 Filing (and then totaling Merial and Intervet's combined positions):

. . . .Based on data provided by the parties, the affected markets where Sanofi/Merial and Intervet would have a combined market share of at least 25% in the EEA at the national level are in Finland, Germany, Ireland, Norway, Sweden and the United Kingdom:

Competitors	Finland	Germany	Ireland	Norway	Sweden	United Kingdom
Merial/Sanofi	--	[10-20]%	[20-30]%	--	[0-5]%	[0-5]%
Intervet	[50-60]%	[40-50]%	[20-30]%	[40-50]%	[30-40]%	[20-30]%
M/I COMBO	[50-60]%	[50-60]%	[50-60]%	[40-50]%	[40-50]%	[30-40]%
Pfizer*	[40-50]%	[10-20]%	[40-50]%	[30-40]%	[50-60]%	[20-30]%
Fort Dodge	--	[20-30]%	[5-10]%	[10-20]%	[5-10]%	[30-40]%

~~~~~~~~~~~~~~~
*Pfizer has acquired the "Old-Schering-Plough/Pre-Organon Transaction" flu vaccine positions in these markets, post 2007 (Equip F, Equip T, and Equip FT).

The parties have a very high combined market share in three countries (between [50-60]%, each in Finland, Germany and Ireland). All of these national markets are very concentrated, since the parties face only two serious competitors, in any of these geographical markets. . . .

There are particularly high barriers to entry to the markets for monovalent influenza vaccines for horses since they are mature, without any major expansion, decline and innovations expected. Thus, no competitor which might enter these markets in the EEA in the near future has been identified. . . .

On the basis of the foregoing, the presently-proposed concentration (Sanofi-Aventis/Merial and Intervet) is likely to create a dominant position for Sanofi/Merial and Intervet, if combined, in the market for monovalent influenza vaccines for horses in Finland, Germany and Ireland, and cause a substantial likelihood of a dominant position in Norway, Sweden and the United Kingdom. . . .

So, this is a[nother] public service mailer -- print, or cut and paste the above, and mail in the next ten days -- if you are at all concerned about preserving European price- and product-offering competition in animal health businesses. Mail it (Old School-style) to this address:

European Commission
Directorate-General for Competition
Merger Registry
J-70
1049 Bruxelles/Brussel
BELGIQUE/BELGIËEN

"Whiskey for my men; beer for my horses. . . ." Carry on.