An Appeal Court confirmed legitimacy of a 200-million RUB fine imposed upon “Pharmstandart” OJSC for bid-rigging

On 24th March 2014, the 9th Arbitration Appeal Court pronounced legitimacy of holding “Pharmstandart” OJSC administratively liable and fining the company over 201 million RUB.

In 2009, the Ministry of Health Care and Social Development organized a tender for centralized procurement of “Pulmozyme” for the state needs. The medicine is used for treatment of some chronic pulmonary diseases (congenital lung defects, chronic pneumonias, immunodeficiencies with lung damage, etc.)

In 2012, the FAS Commission established that “Rosta” CJSC and “Pharmstandart” OJSC had concluded and implemented an agreement that resulted in maintaining prices at the tender at the maximum possible level and found that the companies had violated Clause 2 Part 1 Article 11 of the Federal Law “On Protection of Competition”. Courts supported this decision.

The total fines imposed by the Federal Antimonopoly Service upon “Rosta” CJSC and “Pharmstandart” OJSC for participating in the cartel reached 402 million RUB.

Earlier the 9th Arbitration Appeal Court also pronounced legitimacy of the fine imposed upon another cartel participant – “Rosta” CJSC.