In December 2014, the UK Competition and Markets Authority (“CMA”) cleared the £700 million ($1.2 billion) acquisition by The Cooper Companies of Sauflon Pharmaceuticals, after a Phase I investigation, without remedies. The companies overlapped in the manufacturing and distribution of contact lenses in the UK and Germany.
Compass Lexecon was hired by The Cooper Companies to provide economic advice during the CMA investigation of the transaction. We analyzed the closeness of competition, diversion ratios, price and quality ranges and conducted a preliminary GUPPI analysis to estimate the post-merger price increase. The team included Neil Dryden, Andy Parkinson, and Daniel Westrik.