EU Opens Formal Antitrust Investigation Against Zoetis For Potential Anticompetitive Behavior
(RTTNews) - The European Commission said Tuesday it has opened a formal antitrust investigation to assess whether animal health company Zoetis, Inc. (ZTS) may have breached EU competition rules by preventing the market launch of a competing novel biologic medicine used to treat chronic pain in dogs.
Zoetis' Librela is the first and only monoclonal antibody medicine approved in Europe to treat pain associated with osteoarthritis in dogs.
In parallel to developing Librela, Zoetis acquired another late-stage pipeline product for the same indication of pain relief, which was going to be commercialised in the European Economic Area (EEA) by a third party.
The Commission is concerned that Zoetis may have engaged in exclusionary behaviour contrary to EU antitrust rules by terminating the development of this alternative pipeline product and refusing to transfer this pipeline medicine to the third party which in the EEA had exclusive commercialisation rights.
If proven, the behaviour under investigation may breach EU competition rules, which prohibit the abuse of a dominant position and Article 54 of the EEA Agreement.
The Commission will carry out its in-depth investigation as a matter of priority. The opening of a formal investigation does not prejudge its outcome.
Zoetis Boosts FY24 Outlook As Q2 Results Top Estimates
Zoetis Maintains FY23 Outlook; Q1 Adj. EPS Tops Estimates
Zoetis Again Slashes FY22 Outlook As Q3 Results Miss Estimates; Stock Down 11%
Zoetis Guides Trims FY22 Outlook; Q2 Profit Down 3%
TSX Ends Modestly Lower, Drops Nearly 1.5% In Week
Dollar Rises Against Major Counterparts
Gold Futures Settle Modestly Higher For The Session, Gain 1% In Week
