Yahoo Finanzas Largest Animal Health Firm Zoetis Hit With European Probe Over Possible Breach of Competition Rules Related To Dog Pain Medicine
The European Commission announced on Tuesday that it has initiated an investigation into whether Zoetis Inc (NYSE: ZTS hindered the market launch of a competing pain medication for dogs.
Zoetis’ Librela is the first and only monoclonal antibody medicine approved in Europe to treat pain associated with osteoarthritis in dogs.
The medicine is administered monthly and offers a novel pain relief option, particularly relevant for older dogs.
The European Commission said that Zoetis, while working on Librela, also acquired another pain relief product in its late stages of development for the same purpose. This product was intended for commercialization in the European Economic Area (EEA) by a third party.
The European Commission is worried that Zoetis might have violated EU antitrust regulations by discontinuing the development of this alternative product and refusing to transfer it to the third party, which held exclusive commercialization rights in the EEA.
The company defended its actions, and Reuters stated that the issue stemmed from an experimental compound acquired seven years ago.
According to Zoetis, both the acquisition of the compound and the subsequent decision to discontinue its development were conducted diligently and within legal bounds.
“Competition in veterinary medicines ensures pet owners can choose between different safe, innovative, and affordable medicines. This is why we are investigating whether Zoetis may have unlawfully prevented the entry of a novel medicine used to treat chronic pain in dogs, which could have competed with its own biologic medicine Librela,” said Margrethe Vestager, EVP in charge of competition policy.
Price Action: ZTS shares are up 1.25% at $167.75 on the last check Wednesday.
Photo via Shutterstock
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