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PJ Online homeThe Pharmaceutical Journal
Vol 275 No 7372 p505
22 October 2005

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Pfizer “broke competition rules”

Pfizer has been accused of breaking European competition rules by introducing a pricing structure in Spain that makes exporting to other European countries uneconomic.

The European Association of Euro-Pharmaceutical Companies (EAEPC) says that Pfizer has agreed to sell medicines to selected Spanish wholesalers at prices higher than those fixed by the Spanish government for reimbursement under Spain’s health service. The wholesalers will later receive rebates of the difference if Pfizer is satisfied that the medicines have been sold within Spain and not re-exported.

Hans Bøgh-Sørensen, EAEPC president, said: “Pfizer’s actions are in clear breach of EU competition rules. We are submitting to the [European] Commission a simple open and shut case. This is a straightforward case for the commission to uphold competition in the pharmaceutical sector.”

Mr Bøgh-Sørensen added that Pfizer intended to exert control over distribution in other EU member states. He said that the company was considering a system of direct sales in Germany that would eliminate wholesalers altogether.

A Pfizer spokeswoman said: “In Spain, Pfizer sells those medicines which are eligible for reimbursement under the Spanish social security system and dispensed in Spain at the government-enforced price, in accordance with the Spanish medicines act. Pfizer medicines that do not fall within this category are sold at a freely determined market price. The new distribution system in Spain also offers an option for pharmacists to obtain medicines directly from Pfizer, and complements the traditional distribution channel through pharmaceutical wholesalers.”

She added: “No two countries have identical distribution infrastructures, so the precise arrangements that Pfizer is making in Spain may not be directly applicable elsewhere. We are considering future distribution options in a number of European countries.”

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