PENICILLIN TO THE MANUFACTURE OF 6-APA IN LARGER QUANTITIES AND UNDER MODERNIZED CONDITIONS . THE AGREEMENTS THEREFORE CONTRIBUTE TO THE IMPROVEMENT OF PRODUCTION .
2 . AS A RESULT OF THE AGREEMENTS BOTH FIRMS HAVE BEEN ABLE TO EXPAND THEIR PRODUCTION TO AN EXTENT WHICH SHOULD ALLOW THE CONSUMER TO ENJOY THE RESULTING BENEFIT . THESE BENEFITS WILL STEM FROM THE IMPROVED PRODUCTION WHICH THE COMBINED TECHNICAL KNOWLEDGE OF THE FIRMS MAKES POSSIBLE . FIRMS WHICH DO NOT HAVE RAW PENICILLIN OR 6-APA PRODUCTION FACILITIES AT THEIR DISPOSAL WILL NOW BE ABLE TO OBTAIN THESE PRODUCTS IN LARGER QUANTITIES FROM THE PARTIES TO THE AGREEMENT , PARTICULARLY FROM GIST-BROCADES , WHOSE SALES TO OTHER FIRMS OF RAW PENICILLIN AND OF 6-APA HAVE NEARLY TRIPLED DURING THE YEARS 1971-74 , WHILE PRICES HAVE SHOWN A DOWNWARD TREND . AS A RESULT THOSE OTHER FIRMS HAVE BEEN ABLE TO PRODUCE LARGER QUANTITIES OF PENICILLIN SPECIALITIES AND TO MARKET THEM IN COMPETITION WITH BAYER AND GIST-BROCADES . THE GREATER NUMBER OF END-PRODUCTS AVAILABLE ON THE MARKET AND THE GENERAL TREND TO LOWER PRICES SHOW THAT THE CONSUMER IS RECEIVING A FAIR SHARE OF THE BENEFITS OF THE AGREEMENT . HOWEVER , IN ORDER THAT THE COMMISSION MAY FOLLOW DEVELOPMENTS ON THE MARKET , CERTAIN OBLIGATIONS SHOULD BE IMPOSED UPON THE PARTIES .
3 . ALL THE CLAUSES OF THE AGREEMENTS AS AMENDED ARE INDISPENSABLE TO THE ATTAINMENT OF THE STATED OBJECTIVES .
( A ) THE DECISION BY EACH FIRM THAT FOR THE DURATION OF THE AGREEMENT IT WILL NOT MANUFACTURE THE SPECIALIZED PRODUCT ON WHICH THE OTHER WILL CONCENTRATE IS ESSENTIAL , AS ARE THE LONG-TERM MUTUAL SUPPLY CONTRACTS . THERE ARE , HOWEVER , NO EXCLUSIVE SUPPLY CONDITIONS . IF ADDITIONAL SUPPLIES ARE REQUIRED , EACH FIRM IS FREE TO OBTAIN ITS NEEDS ON THE OPEN MARKET . THUS EACH FIRM IS PROVIDED WITH A BASIS SUFFICIENT TO PERMIT IT TO DEVELOP ITS PRODUCTION AND MARKETING PLANS WHILE REMAINING FREE TO MAKE ITS OWN DECISIONS AS TO THE UTILIZATION OR EXPANSION OF THAT PART OF ITS PRODUCTION CAPACITY IN THE FIELD COVERED BY THE SPECIALIZATION AGREEMENTS WHICH IS NOT REQUIRED TO FULFIL ITS SUPPLY COMMITMENTS . BAYER IS ABLE TO EXPAND ITS 6-APA PRODUCTION AS IT THINKS FIT WITH A VIEW TO PROCESSING GREATER QUANTITIES OF SEMISYNTHETIC PENICILLIN SPECIALITIES . GIST-BROCADES IS FREE TO DETERMINE ITSELF THE AMOUNT OF RAW PENICILLIN TO BE PRODUCED AND THEREFORE THE QUANTITY TO BE PROCESSED INTO EITHER OF THE STERILE SALTS PENICILLIN G , OR V OR INTO 7-ADCA , THE INTERMEDIARY PRODUCT FOR THE MANUFACTURE OF CEPHALOSPORIN . EACH FIRM IS REQUIRED TO MAKE A PROPORTIONATE FINANCIAL CONTRIBUTION ONLY WHEN IT SEEKS FROM THE OTHER QUANTITIES IN EXCESS OF THE CAPACITIES OF THE JOINTLY FINANCED PLANT .
( B ) IN THE EARLIER VERSIONS OF THE AGREEMENT THERE WAS NO SUCH PROVISION FOR SEPARATE ACTION ON THE MARKET INDEPENDENTLY OF THE SPECIALIZATION ARRANGEMENTS . THE PLANTS WERE ORIGINALLY TO BE TRANSFERRED TO JOINT SUBSIDIARIES