The Swedish Competition Authority prohibits Apotekstjänst's acquisition of Svensk dos

Apotekstjänst Sverige AB and Svensk dos AB both operate pharmacies licensed by the Swedish Medical Products Agency to perform mechanical dose dispensing of pharmaceuticals to the outpatient care sector. This means that tablets and capsules are taken out of their original packaging and then repackaged into special dose bags intended for individual patients. Each dose bag contains the medication that a patient should consume at a specific time. The majority of customers on the market are the Swedish regions that procure these services from the dose pharmacies.

In November 2023, Apotekstjänst filed a notification of acquiring sole control over Svensk dos to the Swedish Competition Authority. Currently, there are only three dose pharmacies authorised to provide mechanical dose dispensing services to the outpatient care sector in Sweden. The proposed acquisition would therefore leave only two remaining suppliers on the Swedish market. The parties have argued that competition will not be inhibited as a result of the concentration, partly because Svensk dos likely would exit the market regardless of the planned acquisition. The Swedish Competition Authority, however, has not found support to base its assessment on any other counterfactual scenario than Svensk dos continuing as a competitor to Apotekstjänst.

The Swedish Competition Authority's investigation shows that Apotekstjänst's acquisition of Svensk dos would significantly inhibit the presence or development of effective competition on the market for mechanical dose dispensing services to outpatient care in Sweden. Therefore, the Swedish Competition Authority prohibits Apotekstjänst's acquisition of Svensk dos. The prohibition is subject to a penalty payment of SEK 100 million.

"Effective competition benefits customers and consumers in various ways, including through low prices. The notified acquisition would mean that customers purchasing dose dispensing services, including the regions, will have even fewer bidders. When the competitive pressure exerted by Svensk dos is removed through this acquisition, there is a risk of poorer bids and conditions for buyers. The effects can be very significant for the market as a whole," says Rikard Jermsten, Director General of the Swedish Competition Authority.

During the Swedish Competition Authority's investigation, Apotekstjänst, Svensk dos, and the seller of Svensk dos, Oriola, entered into a subcontracting agreement for supplying mechanical dos dispensing services to certain customers. They also made changes to the share purchase agreement regarding the planned acquisition. The Swedish Competition Authority has assessed that the subcontracting agreement, as formulated, was in violation of the so-called standstill obligation that applies to ensure the effectiveness of the investigation. At the same time, following an application from the parties, the Swedish Competition Authority granted, under certain conditions, an exemption to the subcontracting agreement during the ongoing investigation. This is the first time the Swedish Competition Authority has made such a decision of exemptions.

"It was for patient safety reasons that the Swedish Competition Authority chose to grant an exemption from the standstill decision for the first time. This was to ensure patients' access to dose-packaged medicines," says Rikard Jermsten.

The decision to grant an exemption from the standstill obligation no longer applies as the Swedish Competition Authority's review of the acquisition has been completed.

For patient safety reasons, the Swedish Competition Authority has decided that the prohibition of the planned concentration will not take effect immediately. It will apply from June 1, 2024.

Maria Ulfvensjö Baltatzis, Head of Unit responsible for concentrations, +46 8 700 16 54, maria.ulfvensjo@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 76 542 15 92, marie.stromberglindvall@kkv.se

Read the decision (in Swedish)