Spanish Competition Agency: Sector inquiry and investigation
From the inquiry’s preliminary views, it appears that there would be potential competition restrictions related to the market access and the exercise of wholesalers' activities, because of the structure of the market and existing regulations.
Sector-wide Inquiry on drug wholesale supply market by the Spanish Competition Agency
On 17 March 2017 the Spanish Competition Agency (CNMC) launched a sector inquiry into the drug wholesale supply market in Spain. From its preliminary views, it appears that there would be potential competition restrictions related to the market access and the exercise of wholesalers' activities, because of the structure of the market and existing regulations.
The CNMC identified possible barriers to competition in the market:
- On the one hand, the strategies over innovative drugs adopted by patent owners may restrict or delay the market entry of generic medicines. It seems that such strategic behaviours may be facilitated by the fact that Spanish regulation may not be proportionate to the objective it is designed to pursue.
- On the other hand, the CNMC observes that the regulated system which set wholesale margins and prices is highly affected by market failures. In order to bring more competition into the drug wholesale supply market, the CNMC is exploring alternative mechanisms such as centralized purchasing and public tenders.
CNMC investigates on the dual-pricing schemes of pharmaceutical companies in Spain
Since 2005, Pfizer has been the focus of an ongoing investigation for alleged dual-pricing after a complaint by Spain Pharma.
In its decision on 19 January 2017, the CNMC confirmed that Pfizer’s pricing mechanism did not amount to dual-pricing. It also confirmed that Pfizer was not restricting parallel trade; Pfizer had established one price for its drug (the “Pfizer price”) for drug exports, then applied a discount when wholesalers indicated that (i) the drug was to be commercialised in Spain, and/or (ii) the drug was reimbursed under the Spanish National Healthcare System. Pfizer did not request information about wholesalers’ exports.
Therefore, there was no voluntary setting of two prices for the same drug depending on its destination, or with the purpose of restricting parallel trade.
On 21 March 2017, in the wake of the Pfizer case, the CNMC opened proceedings against six pharmaceutical companies regarding alleged dual pricing in the drug supply market in Spain: Pfizer, Janssen-Cilag, Merck Sharp & Dohme Spain, Lilly, Sanofi-Aventis, Novartis Farmacéutica.
