Anticompetitive practices come under scrutiny in Australia

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Anticompetitive practices come under scrutiny in Australia

Home/Pharma News | Posted 28/03/2014 0 Post your comment

The Australian Competition and Consumer Commission (ACCC) has started proceedings in the Federal Court against Pfizer Australia (Pfizer) alleging that offers made by Pfizer to pharmacies before the expiry of the patents for its blockbuster cholesterol-lowering drug Liptor (atorvastatin) were anticompetitive.

Prior to the loss of patent protection in May 2012, Lipitor was prescribed to over one million Australians, with annual sales exceeding AUS$700 million.

The ACCC is alleging that Pfizer offered significant discounts and rebates previously accrued on Lipitor sales on the condition that pharmacies acquired a minimum volume of up to 12 months’ supply of Pfizer’s generic atorvastatin product. These offers were made in early 2012, prior to Lipitor’s patent expiry and before other generics were allowed to enter the market.

The ACCC believes that Pfizer engaged in this conduct in order to deter or prevent competition from generics, which the ACCC then deems as anticompetitive.

The ACCC is seeking monetary penalties, declarations and costs. A directions hearing will be held on 18 March 2014 in the Federal Court in Sydney.

This is not the first time that Pfizer has tried such tactics. Prior to patent expiry in the US the company urged pharmacists to ‘block prescriptions for a generic version of Pfizer’s Lipitor’ in exchange for discounts on the brand-name drug [1].

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Reference

1. GaBI Online - Generics and Biosimilars Initiative. Pfizer continues to fight for Lipitor [www.gabionline.net]. Mol, Belgium: Pro Pharma Communications International; [cited 2014 Mar 28]. Available from: www.gabionline.net/Generics/News/Pfizer-continues-to-fight-for-Lipitor

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Source: ACCC