Decision Nº M/04/006 from Competition and Consumer Protection Commission, 2004-02-26

• Jurisdiction: Ireland
• Parties: Abbott Laboratories,TheraSense
• Date: 26 February 2004
• Decision Date: 26 February 2004
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/04/006

Determination of the Competition Authority

Determination No. M/04/006 of the Competition Authority, dated 26th February

2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/006 – Proposed acquisition by Abbott Laboratories of all

of the issued shares of TheraSense.

Introduction

1. On 26th January 2004 the Competition Authority, in accordance with Section 18

(1) of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis,

of a proposal whereby Abbott Laboratories (“Abbott”) would acquire all the

issued shares of TheraSense, Inc (“TheraSense”) which it does not already own.

The Parties

2. Abbott is a US-registered multinational corporation which is engaged in the

discovery, development, manufacture and sale of a broad and diversified line of

health care products and services. In Ireland, Abbott sells pharmaceutical

products, medical hospital products, medical diagnostics and medical nutritionals.

3. TheraSense develops, manufactures and sells glucose monitoring systems

designed to reduce the pain of testing for people with diabetes. TheraSense did

not have any sales in the Republic of Ireland in 2003 or 2002. It did, however,

have sales in Northern Ireland of between €[ ] and €[ ] in 2003.

Analysis

4. There is overlap in the products manufactured by both parties. Abbott’s medical

diagnostic sales division also produces glucose monitoring systems for diabetes

patients. However, the transaction does not give rise to competitive overlap in

the State given that TheraSense does not have any sales into the State. Moreover

the small share of TheraSense in the UK (including Northern Ireland) in this

sector – c.[0-5]%, coupled with the sufficiency of competitors in the blood

glucose monitoring sector in Ireland ensures that the proposed transaction does

not give rise to competition concerns.

Determination

The Competition Authority, in accordance with Section 21(2) of the Competition Act,

2002, has determined that, in its opinion, the result of the proposed acquisition will

not be to substantially lessen competition in markets for goods and services in the

State and, accordingly, that the acquisition may be put into effect.

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