EU Study Highlights Risks of ‘Killer Acquisitions’ in Pharma Sector

A new EU study (28 November) reveals significant risks to innovation and competition in the pharmaceutical industry from ‘killer acquisitions’—transactions where drug R&D projects are acquired and discontinued without clear justification.

Key findings (2014–2018):

  • 240 pharma deals involved overlapping R&D projects.
  • 89 cases (18 per year) lacked technical or safety reasons for discontinuation, warranting further scrutiny.
  • These deals often occur in highly concentrated markets, exacerbating risks to innovation.

The study underscores the need for enhanced oversight and enforcement to safeguard competition in the pharma sector.

Source: https://competition-policy.ec.europa.eu/document/download/114a5059-d4ee-4136-9df0-b636b8bf83cd_en?filename=kd0124008enn_ex-post_evaluation_study_pharma_report%26appendices.pdf

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