CCP clears IIL’s acquisition of Novartis Pakistan

The Competition Commission of Pakistan (CCP) has approved the acquisition of Novartis Pharma (Pakistan) Limited by International Investment II Limited (IIL), clearing the transaction after a Phase-I competition review under Section 11 of the Competition Act, 2010. The approval was announced on Saturday, November 8, following a detailed merger-control assessment.

IIL, incorporated in Hong Kong, is an investment holding arm of the Getz Group, which already operates in Pakistan through Getz Pharma (Private) Limited and Scilife Pharma (Private) Limited. The transaction involves transferring control of Novartis Pakistan from Novartis AG and Novartis Pharma AG to IIL through a share purchase agreement, marking one of the largest foreign-linked pharmaceutical acquisitions in the country this year.

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The CCP evaluated the proposed merger to determine whether it could lead to market dominance or reduced competition in therapeutic drug segments. According to the regulator, it defined the relevant markets at the therapeutic class level, as substitution between categories such as cardiovascular agents, anti-epileptics, and diabetes treatments is limited.

The Commission found minor overlaps between Novartis Pakistan and the acquiring group in several product areas, including anti-rheumatics, anti-epileptics, cardiovascular agents, and diabetes drugs, but determined that combined market shares remained below thresholds of concern.

As a result, the CCP concluded that the deal would neither create nor strengthen a dominant position nor substantially lessen competition in any market. The transaction was therefore authorized under Section 31(1)(d)(i) of the Competition Act.

Novartis Pakistan is among the country’s leading multinational drug manufacturers, producing and distributing a range of branded medicines across oncology, ophthalmology, and cardiovascular therapies. Its integration into IIL’s portfolio could broaden Getz Group’s footprint in the high-value prescription-drug segment.

Pakistan’s pharmaceutical market, valued at roughly Rs 850 billion (US $3 billion) according to the Pakistan Pharmaceutical Manufacturers Association (PPMA), has grown at an average annual rate of 10–12 percent over the past five years, driven by rising healthcare demand and regulatory reforms. The entry of new investors such as IIL underscores renewed foreign interest despite macroeconomic headwinds.

The Competition Commission has increasingly emphasized merger scrutiny in healthcare and consumer-goods markets to prevent monopolistic consolidation. Recent transactions, including those in the pharma distribution and diagnostic services segments, have been cleared under similar competitive assessments where post-merger concentration remained below dominance thresholds.