Sigma avoids GMiA scrutiny
October 26, 2010
THE long-running potential
purchase of the generics division of
Sigma Pharmaceuticals has been
cited as the reason for the rejection
of a complaint against the firm
under the draft Generic Medicines
Industry Association code.
La Trobe University academic Dr
Ken Harvey brought the formal
complaint against Sigma under the
new GMiA Code in April, raising
concerns about the Sigma Rewards
loyalty program.
Harvey said that initially GMiA
delayed hearing the complaint,
because the organisation was
awaiting authorisation of the
proposed Code of Conduct.
Subsequent to this the Code was
granted draft authorisation - but
with the ACCC adding conditions
requiring the disclosure of
incentives provided to pharmacists.
In a letter to the ACCC this week
Harvey said that the GMiA then
said a further delay to hearing the
complaint would apply because of
the mooted sale of the Sigma
generics business - with the
complaint eventually rejected on
the same grounds.
In August Sigma announced it
had agreed in principle to the sale
of the pharmaceutical division to
Aspen, but the deal has not yet
been concluded, with an already
extended exclusivity period between
the companies set to expire this Fri.
Harvey’s letter to the ACCC urges
it to “take this matter into account
when finalising the decision on
conditions to be imposed on the
GMiA application for Code
authorisation.
“It is my view that complaints
about industry behaviour should
deal with the behaviour complained
about and not be rejected because
the company concerned may
change in the future,” he wrote.
In his letter he also urged that the
government continue to pursue its
desire for a ‘level playing field’
between all industry groups,
suggesting that all of the various
Codes of Conduct be submitted to
the ACCC for authorisation on a
regular basis.
Harvey also reminded the ACCC
about last year’s controversy
regarding Sigma’s Mediterranean
educational cruise, which was the
subject of a complaint against the
firm under the Medicines Australia
Code of Conduct.
At that time Sigma argued that it
wasn’t subject to the provisions of
the code because it wasn’t a
member of Medicines Australia -
and there was then no GMiA code
of conduct under which the
complaint could be registered.
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