INQUIRY INTO SUPPLY OF PRESCRIPTION-ONLY VETERINARY MEDICINES: COMPETITION COMMISSION CONSULTS ON ISSUES

The Competition Commission has today sent issues letters to the main parties in its monopoly inquiry into the supply of prescription-only veterinary medicines within the UK.

An issues letter is always sent to main parties before the Competition Commission has reached any conclusions. It is designed to highlight those matters which have been identified by the investigating group for further consideration and to ensure that nothing has been missed. A statement of the issues identified is annexed to this news release.

The Competition Commission considers that a scale monopoly situation may exist in favour of National Veterinary Services Ltd (NVS), a subsidiary of Dechra Pharmaceuticals PLC, which appears to supply at least one quarter of the services as defined in the terms of reference. This finding does not imply the existence of any facts which operate or might be expected to operate against the public interest; it will be considered in the next stages of the inquiry.

The Competition Commission is not yet in a position at this stage to provisionally conclude that any complex monopoly situations exist among the suppliers involved in the inquiry, i.e. whether there is any conduct by some manufacturers, veterinary wholesalers or veterinary surgeons which prevents, restricts or distorts competition, but has identified a number of practices which it wishes to consider in forming a view as to the possible existence of any such situation. These are set out in the issues statement.

The complete statement of issues may be obtained from the Competition Commission web site: www.competition-commission.org.uk/pressreleases/25-02iss.htm or, in writing, from the Reference Secretary (Veterinary Medicines), Competition Commission, Room 565, New Court, 48 Carey Street, London, WC2A 2JT.

Notes to Editors

The reference was made by John Vickers, Director General of Fair Trading, under sections 10(3), 10(4), 47(1), 49(1) and 50(1) of the Fair Trading Act 1973 (see OFT Press Notice 41/01).
No conclusions will be reached about whether any matters operate or may be expected to operate against the public interest until the Competition Commission submits its report to the Secretary of State for Trade and Industry on 8 January 2003.
Denise Kingsmill, a Deputy Chairman of the Commission, is heading the inquiry. The other members of the group are Graham Hadley, Alan Hamlin, Charles Henderson, and Tim Richmond.
Further information can be obtained from the Commission website at www.competition-commission.org.uk/inquiries/vetmed.htm
Enquiries should be directed to:

Francis Royle, Press Officer Tel: 020 7271 0242

Click here to access the statement of issues