The European Commission announced on Tuesday that it had launched an investigation into whether Zoetis Inc (NYSE:ZTS blocked the market launch of a competing painkiller for dogs.
Librela from Zoetis is the first and only monoclonal antibody medicine approved in Europe for the treatment of pain associated with osteoarthritis in dogs.
The medicine is administered monthly and offers a new pain relief option, especially relevant for older dogs.
The European Commission said Zoetis, while working on Librela, also acquired another painkiller product in its late stages of development for the same purpose. This product was intended for marketing in the European Economic Area (EEA) by third parties.
The European Commission fears that Zoetis may have breached EU antitrust rules by halting development of this alternative product and refusing to transfer it to third parties, which held exclusive marketing rights in the EEA.
The company defended its actions and Reuters said the problem stemmed from an experimental compound it acquired seven years ago.
According to Zoetis, both the acquisition of the complex and the subsequent decision to halt its development were conducted diligently and within legal limits.
“Competition in veterinary medicines ensures that pet owners can choose from several safe, innovative and affordable medicines. For this reason, we are investigating whether Zoetis may have illegally blocked the entry of a new medicine used to treat chronic pain in dogs, which could have competed with its own biologic medicine Librela,” said Margrethe Vestager, EVP of competition.
Price Action: ZTS shares were up 1.25% at $167.75 at last check on Wednesday.
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