The CMA has found that Viatris failed to comply with compulsory restrictions imposed during the CMA’s review of its deal with Theramex
The Competition and Markets Authority (CMA) has fined Viatris Inc. £1.5 million for failing to comply with a legally binding order. Viatris broke the rules when it did not obtain the consent of the CMA before making changes to key staff and then failed to report the breach.
Following a Phase 1 investigation, in April 2024, the CMA found the proposed acquisition by Theramex of the European rights to the hormone replacement therapy treatments Duphaston and Femoston from Viatris could reduce competition and choice for hormone replacement therapy treatments in the UK.
During the investigation, the CMA imposed an ‘Initial Enforcement Order’ under section 72(2) of the Enterprise Act 2002 which sought to prevent any action which could prejudice the CMA’s inquiry or any potential remedies that the CMA might impose.
Viatris breached these restrictions by implementing changes to key members of its UK management team without the CMA’s consent, and then failed to notify the CMA of the breach.
The CMA found that there was no reasonable excuse for Viatris failure to comply with the rules, and the breaches were capable of having an adverse impact on the investigation.
Sorcha O’Carroll, Senior Director for Mergers at the CMA, said:
Where a business fails to comply with an interim measure, without reasonable excuse, the maximum penalty the CMA is able to impose is 5% of the total value of a party’s global turnover.
For more information, visit the Viatris/Theramex merger inquiry page.
Notes to Editors