The EU Commission approves subject to remedies a merger in the healthcare sector addressing the issues of potential competition and unilateral effects in innovative markets (Johnson & Johnson / Guidant)

"Johnson & Johnson/Guidant: potential competition and unilateral effects in innovative markets"*1. Introduction Following an in-depth investigation, on 25 August 2005 the European Commission authorised under the Merger Regulation the planned $ 24 billion (around € 18 billion) acquisition by US healthcare group Johnson & Johnson (J&J) of its competitor Guidant, a US company specialised in cardiovascular medical products, subject to a number of conditions designed to address the competition concerns identified in the course of the investigation. Both J&J and Guidant are active worldwide in the development, production and sale of vascular medical devices. Their products are used by physicians in procedures to treat vascular diseases both in the heart (coronary arteries)