Russian regulators have their eyes on Novo Nordisk. The Danish diabetes specialist violated Russian anti-monopoly laws, alleges the government, which accuses Novo of refusing to make supply deals with some drug distributors--something that would restrict competition in the pharma market. The company faces a fine of up to 15 percent of its Russian revenues.
"The violation was in the company's unjustified avoidance and refusal to sign agreements with some buyers and discriminating against some potential partners in favor of existing ones, which has led to limited competition," the Federal Anti-Monopoly Service says in a statement, the Moscow Times reports.
The government has ordered Novo to stop violating the law, which bars a company in "a dominant position" in a particular market from refusing without cause to contract with a partner. There have to be specific reasons for that refusal, such as economic or technical ones, a Russian legal expert explains to the Times. "For example, if a partner has frequently violated its obligations," Yevgenia Borzilo tells the paper. The company is considering an appeal.
- read the Times piece