Competition Bureau Resolves Concerns in Pfizer's Acquisition of Pharmacia

OTTAWA, April 11, 2003 — The Competition Bureau announced today that it has filed a Consent Agreement with the Competition Tribunal to address competition concerns resulting from Pfizer Inc.'s acquisition of Pharmacia Corporation and the indirect acquisition of Pharmacia Canada. The agreement provides for the divestiture of two developmental pharmaceutical compounds that will treat human sexual dysfunction and one that will treat overactive bladder.

"Consumers benefit from competitive choices when selecting pharmaceutical products," said Dean Shaikh, Senior Competition Law Officer. "This agreement will preserve the continued development of alternatives to such products as VIAGRA."

After a thorough review, the Bureau concluded that the transaction would likely have resulted in a substantial prevention of competition in the treatment of human sexual dysfunction. To remedy these concerns, the parties agreed to return Pharmacia's rights to a developmental intranasal apomorphine compound to Nastech Pharmaceuticals Inc. and to divest another developmental compound to Neurocrine Biosciences Inc. These products have the potential to become competitors to Pfizer's VIAGRA.

The Bureau also determined that the transaction would substantially prevent competition in the treatment of overactive bladder. To remedy these concerns, the parties agreed to divest Pfizer's developmental product, Darifenacin, to Novartis Pharma AG.

During the review process, the Bureau communicated regularly with the Federal Trade Commission in the United States and the Merger Task Force of the European Commission.

"Close cooperation is becoming a fundamental part of our review of international transactions," said Mr. Shaikh. "Coordinated efforts are important to achieving appropriate and consistent remedies."

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:
Tim Weil
Senior Communications Advisor
Competition Bureau
819-953-9271 or 613-296-2189 (cell.)

For general enquiries or information regarding the Competition Act, please contact:
Competition Bureau's Information Centre
819-997-4282 or 1-800-348-5358