(RTTNews) - Viatris Inc. (VTRS), a global healthcare company, has been fined £1.5 million by the Competition and Markets Authority for violating a legally binding order during the review of its agreement with Theramex.
London-based Theramex, a global women's health pharmaceutical company, acquired the European Rights to Viatris' hormone replacement therapies Femoston and Duphaston last year.
The deal was being investigated after the Competition and Markets Authority (CMA) determined it could potentially limit competition and reduce options for hormone replacement therapy treatments in the UK.
The UK competition regulator had enforced compulsory restrictions during its review of the Viatris/Theramex deal.
The investigation was concluded in August of this year, with the companies agreeing to divest the rights to commercialize Femoston and Duphaston in the UK to a third-party purchaser (Insud Pharma).
However, it has been found that Viatris violated the restrictions imposed during the CMA's review by making changes to key members of its UK management team without the CMA's approval and subsequently failing to inform the CMA of the breach.
Commenting on the developments, Sorcha O'Carroll, Senior Director for Mergers at the CMA, said, "Interim orders are of vital importance to the proper functioning of the UK's voluntary merger control regime. The CMA expects parties to comply in full with their obligations under such orders, to put in place robust procedures to ensure compliance, and to be open and transparent in all their dealings with the CMA in relation to them."
VTRS closed Thursday's trading at $13.25, up 0.91%. In premarket trading today, the stock is down 0.61% at $13.05.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
