Four pharmaceutical companies fined €22 mln for anti-trust abuse

The fine is the second-highest on the local market, following that of €28.5 mln in 2006 applied to cement producers CarpatCement, Holcim and Lafarge.

The four pharmaceutical companies are one local branch of American Eli Lilly producer, fined RON 3.8 mln (€1 mln), and three local distributors, Mediplus, Relad and A&A Medical.

Mediplus, local market distribution leader received the heaviest fine, of RON 49.2 mln (€13.3 mln). The fine of the second-largest player, Relad, was half, at RON 26.3 mln (€7 mln), while A&A Medical’s fine was RON 4.3 mln (€1.1 mln).

Eli Lilly indicated that it will take two-three days to decide whether it will pay the fine or contest it in court, once it has ascertained what and how this fine was determined.

“We were taken by surprise. The Competition Council made the communique public and only now will send us the reasons that led to this decision. I cannot interpret what motivated the Council,” said Daniel Popescu, Eli Lilly Corporate Affairs Manager for Business Standard. “What is even more surprising is that we have the lowest share of the insulin market. We are the third player, with a 17-20 percent market share, following Novo Nordisk and Sanofi-Aventis,” added Popescu. The Eli Lilly Manager said that he was aware of the investigation being carried out by the Competition Council, and the company fully cooperated with authorities to supply all data and reports requested. He added that the size of the fines for the three distributors is not in keeping with the volume of the business which the American producer has with each of the distributors in part.

If the fines are paid the cost could cancel Mediplus and Relad’s profit for 2007, as the 2007 profit margin is 2 percent, and the two announced business estimated at €287 and €250 million, respectively.