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A Study on Mergers & Acquisitions and Competition Law Issues of Biotechnology and Pharmaceutical Industries
Competitiveness,Mergers and Acquisitions,Biotechnology and Pharmaceutical Industries,Competition Law,Merger Control,
|Publication Year :||2018|
The scale of enterprises in biotechnology and pharmaceutical industries in Taiwan is too small to have competitiveness in the world. As a result, the government intends to promote cooperation and strengthen the alliance in the industries as its industrial policy, in particularly, to create a “national champion”. As a popular strategy, mergers and acquisitions may improve enterprises’ performance and thus increase competitiveness in the international market. However, mergers and acquisitions may also cause the rearrangement of market structure, resulting in competition restraints. There may be a conflict between competition policy and industrial policy. Therefore, this study focuses on harmonizing the conflict thereof as well as to investigate the application of the organic law and completion law in the mergers and acquisitions activities in biotechnology and pharmaceutical industries in Taiwan.
According to the Fair Trade Act, any merger which crosses a certain threshold shall be filed with the Fair Trade Commission (FTC) in advance. However, there are ambiguities in the Principles for the Treatment of Relevant Market Definitions issued by FTC, resulting in the failing of compliance with applicable laws and regulations by the enterprises of merger. There is also no published guideline for the relevant market definitions of pharmaceuticals. FTC may consider issuing the guideline so as to help enterprises in pharmaceutical industry to ensure compliance with applicable laws and regulations.
The scale of enterprises in biotechnology and pharmaceutical industries in Taiwan at present is so small that any merger of enterprises may hardly crosses the defined threshold to file with FTC. However, the enterprises of merger may need to file with FTC in the future. Considering the synergy of mergers and acquisitions and the improvement of competitiveness in the world, there is a strong possibility that the overall economic benefit of merger outweighs the disadvantages resulted from competition restraint. Besides, the competition restraint in pharmaceuticals can be controlled owing to the drug pricing system of National Health Insurance in Taiwan. Therefore, FTC may not prohibit the mergers and keep lax in the merger control practice.
|Appears in Collections:||事業經營法務碩士在職學位學程|
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