Are pharmaceutical companies exempt from competition law?
Whilst pharmaceutical companies are subject to sector-specific regulation, the cases illustrate that this does not exempt them from competition law.
Companies that infringe EU or UK competition law can be fined up to 10% of their worldwide turnover and have their agreements rendered void and unenforceable.
I. Introduction
This survey article discusses European competition law developments in the pharmaceutical sector from 1 April 2019 through 31 August 2020.
Section II reviews developments in the wake of the COVID-19 pandemic.
Section III discusses competition with generics and biosimilars, including the seminal judgment of the Court of Justice of the European Union.
II. Competition Issues Arising from Covid-19 Pandemic
In March 2020, the outbreak of COVID-19 caused the European Union to suffer a major public health emergency with repercussions across European economies.
The effects of the crisis have particularly been felt in the pharmaceutical sector, where Member States have experienced shortages of medicines and testing materials essential to address the COVID.
III. Restriction of Competition from Generic and Biosimilar Suppliers
C.
Activities against biosimilar competitors
IV. Excessive Pricing
In recent years, competition authorities have shown an increased willingness to pursue excessive pricing cases in the pharmaceutical sector, including the European Commission’s ongoing investigation of Aspen (following an earlier decision in Italy), and a number of other investigations at national level in Member States of the EU.
While competition.
Should pharmaceutical companies seek legal advice?
Where appropriate, pharmaceutical companies should seek legal advice and ensure that they have appropriate competition law compliance programmes in place.
Burges Salmon advises on a range of competition law matters in the pharmaceutical and healthcare sector.
v. Parallel Trade
While the issue of parallel trade appears to remain low on the priority list of the European Commission, pharmaceutical companies continue to face challenges to manage their supply chains in an effective and compliant manner.
This is illustrated by the fines imposed on GlaxoSmithKline in Romania, and the additional challenge posed by cross-border m.
VI. Cartels and Information Exchange
A.
Aspen, Tiofarma, and Amilco
VII. Collaborations and Licensing
A.
Roche, Novartis
