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Torrent Pharma–JB Chemicals deal under CCI lens over possible monopoly risk

Published on 09/10/2025 02:42 PM

The Competition Commission of India (CCI) has raised concerns over the proposed merger between Torrent Pharmaceuticals and JB Chemicals, pointing to potential monopoly risks in key therapeutic segments. The antitrust watchdog believes the deal could significantly reduce competition and distort pricing dynamics in the domestic pharmaceutical market.

According to sources familiar with the development, the CCI has sought additional details from both companies regarding their product overlaps and market share. The regulator is particularly examining two drug categories — Nifedipine, used to treat hypertension, and Lactobacillus, a probiotic formulation — where the combined market share could exceed 70 to 90 per cent post-merger.

Officials say such concentration levels could limit competition and give the merged entity undue control over pricing and supply, impacting smaller players and consumers alike. Both Torrent Pharma and JB Chemicals have reportedly proposed not to increase prices of these medicines for the next three years, in a bid to ease regulatory concerns.

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The CCI has issued a notice under Section 29(1) of the Competition Act, marking the start of a detailed investigation into the deal’s potential anti-competitive impact. The regulator is expected to decide on the next course of action once the companies submit their responses.

Industry observers note that this is one of several recent cases where the CCI has tightened scrutiny on pharmaceutical mergers to prevent market dominance. Torrent Pharma and JB Chemicals have yet to respond to queries sent by Zee Business.

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.