CCP Approves Citi Pharma’s Acquisition of Pakheim International Pharma

The Competition Commission of Pakistan (CCP) has approved Citi Pharma Limited’s acquisition of the entire shareholding of Pakheim International Pharma (Pvt.) Limited, concluding that the transaction is unlikely to substantially lessen competition in the relevant pharmaceutical markets.

The approval follows a Phase-I competition assessment conducted under the Competition Act, 2010, allowing Pakheim International Pharma to become a wholly owned subsidiary of Citi Pharma Limited.

Citi Pharma to Expand Through Acquisition

Citi Pharma is a publicly listed company engaged in the manufacture and sale of pharmaceuticals, medical chemicals and botanical products. Its business includes the production and sale of Active Pharmaceutical Ingredients (APIs), pharmaceutical formulations and nutraceutical products.

Pakheim International Pharma is a private limited company involved in the manufacture and sale of pharmaceutical products. Under the proposed transaction, the company will operate as a wholly owned subsidiary of Citi Pharma.

CCP Identifies Five Relevant Pharmaceutical Markets

As part of its competition review, the Commission identified five relevant product markets for assessment:

• Antibiotic Formulations
• Anti-Ulcer Formulations
• Pain Killer Formulations
• Anti-Allergic Formulations
• Anti-Diabetic Formulations

The CCP found horizontal overlap between the two companies in antibiotic formulations, pain killer formulations and anti-diabetic formulations. However, it determined that the overlap was insignificant because of Pakheim International Pharma’s negligible market share.

No horizontal overlap was identified in the anti-ulcer and anti-allergic formulation markets.

Vertical Integration Concerns Assessed

The Commission also examined a potential vertical relationship between Citi Pharma’s API production activities and Pakheim’s use of APIs in pharmaceutical formulations.

The assessment found that Pakheim International Pharma had not sourced any APIs from Citi Pharma during the preceding two years. Considering the target company’s limited market presence, the CCP concluded that the potential vertical relationship did not raise competition concerns.

The Commission further noted that the acquisition would result in only a negligible increase in Citi Pharma’s market shares across the overlapping therapeutic segments. It found that the transaction would neither create barriers to market entry nor limit the ability of existing competitors to compete effectively.

CCP Finds No Substantial Lessening of Competition

Based on its assessment, the Commission concluded that the acquisition would not substantially lessen competition or create or strengthen a dominant position in any of the relevant product markets.

The approval reflects the CCP’s role in reviewing mergers and acquisitions to ensure that business combinations do not undermine competition. Through this process, the regulator seeks to facilitate legitimate transactions that can improve efficiency and attract investment while supporting competitive markets and better outcomes for consumers.