FAS: “NOVARTIS PHARMA” FIXED MONOPOLISTICALLY HIGH PRICE FOR “TYVERB”
The company unreasonably increased the price for the oncological agent under patent protection for nearly 35% to 159,000 RUB per package
In April 2017, FAS opened a case upon signs of “Novartis Pharma” Ltd. breaching Clause 1 Part 1 Article 10 of the Federal Law “On Protection of Competition”.
In the course of the investigation the company was requested to justify the growth of the price for “Tyverb” (“Lapatinib” International Non-Proprietary Name) from 118,000 to 159,000 RUB per package. The drug is used to treat malignant tumours.
Having considered a case, the FAS Commission concluded that the respondent, which has the dominant position on the market of medicinal drug with “Lapatinib” International Non-Proprietary Name in the Russian Federation, had fixed monopolistically high price for the drug. The FAS Commission issued an injunction to eliminate the violations.
Head of FAS Anti-Cartel Department for Control over Social Sphere and Trade, Timophei Nizhegorodtsev, said: ““Tyverb” (“Lapatinib” International Non-Proprietary Name) is not on the List of vital and essential drugs, which means that the government does not regulate the prices for it. In this context, the case opened upon a petition filed by the Moscow Government that is the “Tyverb” buyer to provide treatment to patients under the government guarantees programme is a precedent. Hopefully, the pharmaceutical community will take the FAS decision into account and refuse to manipulate prices for the drugs, particularly, not included in the List of vital and essential drugs”.