The Federal Antimonopoly Service (FAS) of Russia is actively developing a framework for fair practices in the pharmaceutical sector, FAS head Maxim Shaskolsky announced during the Antimonopoly Forum in Moscow.
Shaskolsky noted that the agency continues to receive complaints about pharmaceutical companies refusing to enter into contracts with certain distributors. In several cases, FAS has identified economically and technologically unjustified requirements imposed on partners, which have led to refusals to conclude drug supply agreements. To date, the agency has issued three warnings demanding companies revise their terms on a non-discriminatory basis; two of these have already been fulfilled.
According to the FAS press office, the issue is being addressed by a dedicated working group formed by the Association of Antimonopoly Experts. FAS will continue engaging with pharmaceutical companies to promote “fair practices” in this socially significant market.
“In addition, the agency will focus on improving the efficiency of public procurement in the pharmaceutical sector, fostering competition in the medical devices market, digitizing the drug price registration process for the list of vital and essential medicines (VED), and refining the pricing methodology,”
the agency stated in a press release.
In his address, Shaskolsky also emphasized the agency's ongoing efforts to enhance the social responsibility of manufacturers and retail chains, and its commitment to combating cartels. As part of its broader initiative to modernize antitrust legislation, FAS is also examining the issue of eliminating antitrust exemptions for actions and agreements related to intellectual property.
This includes cases where companies face monopolistic behavior from rights holders who impose excessively inflated prices on their products. According to FAS, intellectual property exemptions should not apply when competition is restricted at the stage of a product’s market entry. The proposed legislation will also clarify that the mere existence of exclusive rights does not constitute market dominance; instead, each case will undergo a detailed market analysis.
FAS plans to initiate discussions on the draft legislation with industry associations and unions in the near future.
Source: FAS
