Zoetis receives backing for acquisition of veterinary drug company Jurox
Animal health company Zoetis has received support from the ACCC for the acquisition of Australian veterinary medicine company Jurox.
After accepting Zoetis’ legal undertaking to divest Jurox’s range of products, consisting of antibiotics for dry and suckler cows and teat glues for cows, the ACCC decided not to oppose the takeover.
Zoetis and Jurox develop, manufacture and sell animal health products. They are two of Australia’s leading suppliers of teat sealants and antibiotics for lactating and dry cows, which are products used to treat or prevent bacterial infections.
“Zoetis is a leader in the supply of intramammary products and Jurox is a well-known competitor with a full range of established products,” the ACCC commissioner said. Lisa Carver said.
“Without the divestiture, the proposed acquisition would combine the two largest suppliers of intramammary antibiotics for lactating cows, two of the four largest suppliers of intramammary antibiotics for dry cows and two of the three largest suppliers of teat sealants. , which would likely result in higher prices for these products.”
The ACCC’s investigation revealed that there are few alternative providers in these markets and that barriers to entry or expansion are high. This is mainly due to lengthy regulatory approval processes, high manufacturing costs and the relatively small size of the Australian market, which makes it difficult to achieve economies of scale.
To address the ACCC’s concerns, Zoetis has offered the ACCC a commitment to sell Jurox’s line of intramammary products, namely Ampiclox LC and DC, Juraclox LA, Maxalac LC and DC and U-Seal.
“The ACCC is satisfied that the divestiture commitment resolves the competition concerns raised and ensures that Jurox’s intramammary product line will continue to compete with Zoetis’ products,” said Ms. Carver.
Zoetis proposed veterinary pharmaceutical company AVet as the initial purchaser of the intramammary product line after an agreement was reached between AVet and Zoetis. The ACCC has approved AVet as the buyer.