Healthy Skepticism Library item: 18973

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Publication type: news

Pfizer, Dexa fined for price fixing
The Jakarta Post 2010 Sep 28
http://www.thejakartapost.com/news/2010/09/28/pfizer-dexa-fined-price-fixing.html

Full text:

The Business Competition Supervisory Agency (KPPU) fined pharmaceutical companies PT Pfizer Indonesia and PT Dexa Medica Rp 25 billion (US$2.8 million) and Rp 20 billion respectively on Monday for participation in a price fixing scheme involving amlodipine tablets.

In its verdict, the antimonopoly agency said that the two companies were involved in cartel practices which had led to skyrocketing prices of their amlodipine tables.

The price of Norvask, produced by Pfizer, was 14.6 times more expensive than the average international price, while Tensivak, produced by Dexa Media, was 13.6 times higher, KPPU commissioner Ahmad Ramadhan Siregar said.

“Supposedly, the difference between the local and international price should only be 2.5 times,” Siregar said.

In addition to the fine, KPPU also asked Pfizer to slash the price of Norvask by 65 percent, while Dexa was asked to lower the price of its Tensivak tablet by 60 percent.

Speaking to reporters following the issuance of the verdict, Dexa Medica representative HMBC Rikrik Rizkiyanan said the decision was unfair because the verdict was taken without considering “apple to apple” price comparisons.

The international price used for comparison by the commission was based on the World Health Organization bulk purchase price, Rikrik said.

“We buy our medicine at retail prices, so of course the price is different,” he said.

PT Pfizer Indonesia also opposed the verdict.

“We are not involved in any cartel practices, as alleged by the commission,” Pfizer’s spokesperson
Chrisma A Albandjar said, adding that the company believed that the antimonopoly commission had failed to weigh the evidence appropriately.

The commission did not consider evidence showing Dexa Medica and Pfizer Indonesia were competitors, and that both companies had never been involved in making any agreement in price fixing or production, Chrisma said.

Pfizer rejected all allegations that Pfizer and Dexa had made an agreement in order to control the supply of raw materials, and would appeal the commission’s decision to the district court, she said.