Healthy Skepticism Library item: 14135

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Baxter busted by ACCC
Pharmacy Daily (Australia) - registration required 2008 Aug 18
http://www.pharmacydaily.com.au

Full text:

THE Federal Court has found that Baxter Healthcare breached ‘misuse of market power’ and ‘exclusive dealing’ provisions of the Trade Practices Act when it entered into long term supply contracts with state authorities.

The long-running case brought by the Australian Competition and Consumer Commission related to deals which bundled the supply of sterile fluids with peritoneal dialysis products.

The court found that Baxter, as the sole supplier of sterile fluids, had taken advantage of its
market power to structure the terms on which it supplied other products to health departments
in SA, WA, NSW and Qld.

ACCC chairman Graeme Samuel welcomed the decision, saying it had taken the proceedings after a
complaint from a medical practitioner that “exclusivity agreements between the government and Baxter limited the choice of treatment which would best meet the needs of their patients.”

The case now moves to a single judge to “consider the imposition of penalties and other relief.”