On 3 July 2017, the president of the French competition authority, Isabelle de Silva, indicated the intention of the authority to assess potentially “excessive prices” in the healthcare industry, during a press conference.
The competition authority will start the investigation in the next few weeks, following scrutiny by the European Commission and the UK into excessive pricing for cancer medicines and epilepsy drugs.
Investigations will cover all aspects of the drugs market, but the competition authority will take a closer look at excessive pricing in particular, since it has already drawn attention during previous probes. In addition, Government mechanisms to determine drug prices will also form part of the investigation.
Isabelle de Silva said the competition authority would re-examine areas previously investigated and undertake a systematic study of all aspects that could facilitate a more efficient market. Further to the competition authority’s decision against a global pharmaceutical company and a global leading consumer health and hygiene company in 2013, ensuring that drug manufacturers do not impede competition from cheaper generics remains a priority for the authority.
The competition authority is also investigating two global drug manufacturers over alleged anti-competitive practices related to the treatment of eye disease. This follows the Italian regulator’s inquiry into collusion to artificially differentiate products to persuade doctors to prescribe the more expensive treatment.
This is clearly a new trend for competition authorities across Europe, with several other competition authorities investigating drug manufacturers for alleged anti-competitive practices. In the UK, the Competition and Markets Authority fined two international pharmaceutical companies approximately €100 million in December 2016 for charging excessive prices to the country’s health service for an epilepsy drug. In Italy, the two global drug manufacturers were fined €182.5 million by the national competition authority for having colluded to create “an artificial product differentiation” between Avastin and Lucentis. In addition, in May 2017 the European Commission opened an antitrust probe into a leading global player in specialty, branded and generic pharmaceuticals over suspected excessive prices for five cancer medicines.
How Reed Smith can help
With extensive experience of anticompetitive investigations and litigation before competition authorities and courts, Reed Smith’s EU, Competition & Regulatory team can assist you if you are involved in such proceedings, from the start of investigations through to the follow-on defence against private claims.
The team has recognised expertise in the healthcare sector, in which it assists and represents several pharmaceutical companies on a daily basis in competition investigations, competition infringement procedures, strategic advice and litigation. The team has been and is involved in a number of the EU, competition and regulatory landmark cases in the industry.
Client Alert 2017-177
