HQ Team
April 4, 2024: Britain’s Competition and Markets Authority (CMA) expressed concerns over Theramex’s planned acquisition of Femoston and Duphaston stating it may reduce competition and choice for hormone replacement therapy (HRT) treatments in the country.
Theramex specialises in women’s health products, such as HRT and fertility treatments. Last year, Theramex announced it would buy the European rights to the Duphaston and Femoston HRT product ranges from Viatris.
During its Phase 1 review, the competition watchdog identified that Theramex was one of the largest suppliers in the systemic HRT market in the UK.
It supplies oestrogen patches and combined oestrogen and progestogen patches and pills. Femoston offers a competitive alternative to Theramex’s products.
“The CMA is concerned that the deal could reduce competition in this important market, the cost of which is often covered by the National Health Service, by reducing incentives to bring new products to the market and improve and promote existing products,” according to a statement.
“The reduction of HRT alternatives in a market that is already highly concentrated could reduce choice and also lead to potential price increases, as well as raising concerns about the security of supply.”
The therapy helps to ease menopause symptoms. It replaces oestrogen and progesterone hormones that hit low levels as one approaches menopause.
Oestrogen and progesterone are an essential part of period cycles, ovulation and pregnancy. They also keep your bones healthy. As women get older, the loss of these hormones can have a huge effect on their body.
To replace these hormones, women usually take a combination of oestrogen and progestogen.
Menopausal symptoms include hot flushes, night sweats, sleep problems, mood swings, anxiety and low mood and vaginal dryness.
The watchdog also identified concerns that the merger could also lead to a loss of future competition in the UK market for dydrogesterone, a progestogen-only product.
The CMA found evidence to suggest that without the merger, there could have been greater competition to bring dydrogesterone products to the UK market, and more new products could have been introduced.
“HRT plays a critical role in treating symptoms that impact the everyday lives of millions of women,” said Sorcha O’Carroll, Senior Director for Mergers at the CMA.
“We are concerned this deal between Theramex and Viatris, which transfers control of Femoston and Duphaston in the UK and Europe, may reduce competition and lead to higher prices, as well as prevent new treatments being brought to market.
“Our door is now open to the firms to offer solutions to our concerns, otherwise this case will proceed to a more in-depth investigation.
“Both Theramex and Viatris have five working days to respond with meaningful solutions to the CMA, otherwise, the deal will be referred to a more in-depth Phase 2 investigation,” she said.
