Lilly and Baxter accused of fixing insulin prices in Mexico
This article was originally published in Scrip
Mexico's antitrust commission, the Comisi�n Federal de Competencia (CFC), has said that Lilly, Baxter and several local firms colluded to fix the prices of their diabetes drugs. It plans to fine them Ps21.5 million ($1.7 million) each, the maximum penalty, although the firms deny any wrong doing.
The CFC says it uncovered two separate cases of companies partaking in monopolistic practices. In the first, it has accused Lilly and the local firms Laboratorios Cryopharma, Probiomed and Laboratorios Pisa of colluding when competing in tenders to provide the IMSS, Mexico's public health insurer, with human insulin.
The commission maintains that between 2003 and 2006, three of the firms submitted artificially high prices leaving the fourth company to put forward a lower price. The firms would take turns to submit the lowest price and therefore win the tender, it says.
The second case involves Baxter, Pisa and Fresenius (the latter is also a local firm). These companies allegedly conspired in the same way to fix the prices of their injectable insulin, also between 2003 and 2006.
All firms are accused of breaching federal competition laws. However, the companies still have the right to appeal.
The commission would not give further details on the medicines or prices involved, although it said that the incidences had cost the IMSS millions of pesos. This was the first antitrust case involving the pharmaceutical industry that it had found, it said.
In a statement, Eduardo Pérez Motta, the CFC's president, pointed to the damage that such practices did to the healthcare system and patients. The IMSS was unavailable for comment.
denial and appeal
Alejandro Calder�n, president of Laboratorios Cryopharma, denied any wrong doing, and said there was nothing unusual about the high prices that the firms had submitted. "The IMSS sets a maximum price for the drugs that it buys, and it is very common for companies to submit prices that are close to this ceiling," he told Scrip.
The CFC had investigated the prices of insulin because the IMSS spends more on insulin than on any other drug category, said Mr Motta. He indicated that more CFC investigations into other therapeutic areas were likely.
"This is not the last round, or the final decision – according to the law we have the right to appeal," he said. "We have never taken part in monopolistic practices."
Baxter told Scrip that it was preparing its appeal and that it was committed to fair competition and sustaining the lives of its Mexican patients.
In a statement, Lilly de México denied any involvement in price fixing and said that it will appeal. Laboratorios Pisa also said that it disagreed with the CFC's findings and is preparing its defence as well.