Smith & Nephew Compression Sock – A Premium Medical Product

Smith & Nephew is a London-based company which develops, manufactures and distributes medical products, including wound management, casting and bandaging products as well as orthopaedics and endoscopy products. Beiersdorf, which is based in Hamburg, Germany, develops, manufactures and distributes medical products such as wound management, casting, bandaging and phlebology products as well as cosmetics and self-adhesive tapes.

The joint venture will combine the parents' activities in the following professional medical markets: traditional wound care products, immobilisation products, bandaging products and phlebology products (compression, support and anti-embolism hosiery).

After analysing the markets, the Commission found the relevant markets to be national rather than EEA-wide. The formation of the joint venture by the parties, as originally notified to the Commission, would have led to overlaps in several national markets for professional first aid dressings (plasters), fixation bandages, support bandages and plaster of Paris casts, which gave rise to competition concerns. The national markets concerned include Germany, the Netherlands, Belgium, Denmark, Italy, Spain and the United Kingdom.

To remove the Commission's concerns in the above-mentioned national markets, the parties have undertaken to divest certain businesses either in specific countries, groups of countries or throughout the EEA. The trade marks concerned include Airstrip, Primapore, Cicaplaie, Tenso, the Albu range, Hypafix, Easifix, Sleek, Uniflex, Elastocrepe, Tensocrepe, Elodur, Elastoplast, Idealbinde, Extensoplast, Tensogrip, Platrix and Biplatrix.

Importantly, the majority of the above-mentioned divestments will include goodwill (brand names and other intangible assets), customer contacts, price lists, a transfer of all contracts, all technical know how, all other intellectual property rights, as well as any personnel and in some cases- certain manufacturing equipment that may be required by the purchaser. This should ensure that purchasers which need to be approved by the Commission, will be viable competitors since they will acquire not only the parties' present market share attached to the above-mentioned portfolios but also their brand value.

When evaluating the joint venture, the Commission also examined whether the creation of the joint venture might encourage the parent companies to co-ordinate their competitive behaviour in the retained businesses other than the JV. This was particularly important due to Smith & Nephew's strong market position in the advanced wound care market and Beiersdorf's equally strong position in the consumer markets for first aid dressings, bandages and orthopaedic soft goods. Following a detailed investigation, however, the Commission concluded that there is no such risk as the markets in which the parent companies will be active are clearly distinct.

Also see; diabetic socks.

About The Author:

Rony Swede is a successful author and regular contributor to http://www.socks-n-socks.com. Socks of every style. Find clearance, diabetic, sport, tube, high, baseball, men’s, women’s children’s hiking and more.

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