Arbitration Court of Moscow District confirmed legitimacy of FAS refusal to register excessive prices for medicinal drugs
On 20 October 2016, the Arbitration Court of Moscow Districtdismissed a cassation appeal of “Elfa Scientific Production Centre” JSC, recognizing legitimacy of the refusal of the Federal Antimonopoly Service (FAS Russia) to agree upon the ceiling ex-works prices for “Ciprolloxacin” and “Metronidazole” medicinal drugs manufactured by “Elfa Laboratories” (India) upon a statement of “Elfa Scientific Production Centre” JSC. Therefore, the Cassation Appeal upheld the judgment of Moscow Arbitration Court and the ruling of the 9th Arbitration Appeal Court.
The reason for FAS refusal was that prices applied for government registration unreasonably exceeded the earlier registered prices: on “Ciprolloxacin” - more than threefold and on “Metronidazole” - more than fourfold, when the number of vials in a pack increases.
“The complexity of the judicial proceedings was being the first case for FAS as well as for Arbitration Courts since the Antimonopoly Service was transferred the functions of government regulation of prices for medicinal drugs. The claimant disagreed with the arguments put forward by the antimonopoly body. The Courts of three instances, however, confirmed legitimacy of FAS actions to prevent an unreasonable growth of prices for medicinal drugs”, pointed out Deputy Head of FAS Department for Control over Social Sphere and Trade, Mikhail Degtyarev.