Competition watchdog seeks public feedback for Zuellig Pharma-Eli Lilly deal

[SINGAPORE] The Competition and Consumer Commission of Singapore (CCS) has launched a public consultation regarding a deal for Zuellig Pharma to acquire the local rights to the prescription erectile dysfunction medication, Cialis, from US pharmaceutical major Eli Lilly.

The competition watchdog stated on Thursday (Apr 2) that it is currently assessing whether the proposed transaction might result in a “substantial lessening of competition” within the Singapore market.

The commission accepted Zuellig Pharma’s application for a decision on the deal on Mar 27.

Under the proposed transaction, the privately owned, Singapore-headquartered Zuellig Pharma would acquire assets from New York-listed Eli Lilly.

The move would confer the exclusive rights to manufacture, register, commercially use and distribute Cialis in the Republic.

Currently, the distribution of the medication in Singapore is handled by rival distributor DKSH Singapore.

The regulatory scrutiny comes as Zuellig Pharma already distributes competing erectile dysfunction medications for various other suppliers in the local market, though it does not currently have an existing supply arrangement with Eli Lilly for erectile dysfunction drugs.

In its submission to the CCS, Zuellig Pharma argued that the acquisition “would not trigger anti-competitive vertical effects or give the firm the ability to foreclose the market to competing distributors or suppliers”.

The integrated healthcare services company anchored its defense on three key market factors.

They include the wide variety of alternative erectile dysfunction medications already available in Singapore, the presence of alternative distributors and distribution channels and the significant countervailing buyer power of the Ministry of Health, which procures erectile dysfunction medications on behalf of Singapore’s restructured hospitals.

Zuellig Pharma – founded in the Philippines – is a major player in the Asian healthcare sector, operating across distribution, commercialisation, and clinical trial support logistics.

Eli Lilly maintains a localised presence in Singapore through subsidiaries that handle clinical trial support and related-party services for its global affiliates.

The CCS is inviting public feedback on the proposed acquisition to gauge market sentiment and potential industry impact. The public consultation will close at 5 pm on Apr 16.