ACCC takes Pfizer action
February 14, 2014
The Australian Competition and
Consumer Commission (ACCC) has
started proceedings in the Federal
Court against Pfizer Australia Pty
Ltd for alleged misuse of market
power and exclusive dealing.
The proceedings relate to Pfizer’s
supply of atorvastatin, used to
lower cholesterol, to pharmacies.
The ACCC alleged that in early
2012, Pfizer offered discounts and
the payment of rebates accrued on
sales of Pfizer’s originator brand
of atorvastatin, Lipitor, conditional
upon pharmacies acquiring a
minimum of up to 12 months’
supply of Pfizer’s generic product.
Lipitor was the highest selling
prescription medicine under the
Pharmaceutical Benefits Scheme
for a number of years and prior to
May 2012, annual sales exceeded
$700 million, the ACCC said.
These offers were first made prior
to the expiration of Pfizer’s patent
protection for the atorvastatin
molecule in May 2012, the ACCC
said.
ACCC chairman and ceo Rod
Sims said the commission alleged
that Pfizer engaged in the conduct
with the purpose of deterring
or preventing competitors in
the market for atorvastatin from
engaging in competitive conduct,
as well as for the purpose of
substantially lessening competition.
“Deterring anti-competitive
conduct is an ACCC enforcement
priority because of the harm that
it can cause to the competitive
process and ultimately to
consumers, particularly with such a
widely used product.
“This case also raises an
important public interest issue
regarding the conduct of a patent
holder nearing the expiry of that
patent and what constitutes
permissible competitive conduct.”
Pfizer said it believed strongly that
the offers referred to by the ACCC
were competitive.
“We will vigorously defend the
proceedings.
“As the matter is before the
court, it is inappropriate for us to
comment further.”
The ACCC is seeking pecuniary
penalties, declarations and costs.
A directions hearing is set for 18
Mar in the Federal Court in Sydney.
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