Competition watchdog clears Zuellig Pharma deal for Lilly’s Cialis assets

CCS said the deal is unlikely to lessen competition in the ED medication market.

The Competition and Consumer Commission of Singapore (CCS) has cleared Zuellig Pharma’s proposed acquisition of certain assets from Eli Lilly and Company and its relevant affiliates.

CCS said the transaction—which involves rights to Cialis (tadalafil), a prescription erectile dysfunction medication—is unlikely to substantially lessen competition in Singapore’s erectile dysfunction (ED) medication market.

The proposed transaction would give Zuellig rights to manufacture, register, commercialise, distribute, and otherwise exploit all strengths of the drug for human use in Singapore.

The commission said the relevant market would likely remain competitive after the deal, noting that Cialis is not a “must-have” product for distributors seeking to sell their other products.

Moreover, Zuellig would not be able to preferentially promote the medication over rival ED drugs.

In a separate CCS filing, the applicant argued that competition in the market remains intense due to the presence of multiple branded and generic alternatives, with competition taking place mainly on pricing, brand equity, and tender processes.

The competition watchdog identified the overlapping market as erectile dysfunction medications, including products containing tadalafil, sildenafil, and avanafil.

Rival products listed included Viagra, Caliberi, Spedra, Sildegra, and several sildenafil generics.

The filing also stated that there were no material barriers to entry and that buyers could switch between competing products with minimal cost and time involved.

CCS concluded that the proposed transaction does not infringe Singapore’s Competition Act.

The filing described Zuellig as an integrated healthcare solutions company headquartered in Singapore with operations across Asia spanning distribution, commercialisation, and clinical trial support.

Meanwhile, Lilly is a New York Stock Exchange-listed pharmaceutical company involved in the discovery, development, manufacture, and sale of pharmaceutical products globally.