The Competition Council finalized other two investigations on pharma market

The Competition Council finalized other two investigations on pharma market
The Competition Council finalized other two investigations on pharma market : Bayer, Sintofarm and their distributors for anticompetitive agreements and respectively a possible anticompetitive agreement among members of Medicine Distributors and Importers Association (ADIM) and of Medicine Distributors Association of Romania (ADMR).
Thus, the companies Bayer, Sintofarm and their distributors Mediplus, Polisano, Relad, Farmexim, Farmexpert, Fildas, Montero, ADM, Pharmafarm have been sanctioned with fine of lei 51,52 million (approx. Euro 12 million ) for agreements to prohibit export of Bayer and Sintofarm products.

„These anticompetitive agreements which are considered serious infringements of competition rules have had as object the restriction of competition by isolating Romanian market and preventing from commerce on other markets, inclusively on Internal market. The involvement of distributors in export activities does not lead to the risk of inadequate supply of the Romanian market because, according to legislation in force, wholesalers have the obligation to satisfy with priority the needs of Romanian market" states Mr. Bogdan Chiritoiu, president of the Competition Council.

The fines applied by Competition Council are the following: Bayer – lei 7,25 million, Sintofarm – lei 63.000, Mediplus - lei 11,74 million, Polisano - lei 3,75 million, Relad – lei 1,58 million, Farmexim – lei 4,85 million, Farmexpert - lei 10,99 million, Fildas – lei 5,82 million, Montero - lei 75.000, ADM - lei 3,97 million and Pharmafarm - lei 1,38 million. The investigation on prohibition to export Bayer and Sintofarm products has been opened ex –officio by Competition Council in September 2009.

Also, the Competition Council has finalized, without sanctions, the investigation on a possible infringement of Competition Law by members of Medicine Distributors and Importers Association (ADIM) and Medicine Distributors Association of Romania (ADMR).
The investigation has opened in October 2008 following a decision of companies to cease the medicine's supply to hospitals and pharmacies. According to the representatives of the two associations this decision was due to refusal of the Ministry of Health to adjust the price of medicines depending on exchange rate evolution.

"Having in view that the Ministry of Health has responded to requests of distributors to update the exchange rate according to the law and there have not been notified similar actions, the Competition Council decided not to apply sanctions in this case. However, we warned the representatives of the two associations that competing operators must conduct their activities independently and consequently we are going to monitor very carefully the observance of the competition rules" states the President of the Competition Council.

We recall that the Competition Council has finalized many investigations on pharma market in 2011 and the amount of fines was of lei 60 million (approx. Euro 14 million) as follows:
51,52 million lei (approx. Euro 12 million) - Bayer and its distributors for anticompetitive
agreements; 5,99 million lei (approx. Euro 1.389.157) - Baxter and its distributors for anticompetitive agreements; 1,87 million lei (approx. Euro 435.264 ) - Belupo Croaţia and its distributor in Romania, SC A&G MED TRADING SRL for anticompetitive agreements;
467.081 lei (108.623 Euro) - Labormed Pharma for putting into effect an economic
concentration prior to authorization from Competition Council.
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