As per the information shared by the Georgian National Competition Agency of republic of Georgia it has fined four pharmaceutical companies for price-fixing on oncology medicines funded within the state programme.
The competition agency has stated its study had identified 42 medicines with identical prices from companies, including Aversi, PSP, Gepha and Mermisi, against competition regulations, as these incidents took place between 2021 and 2023.
It is to be specifically mentioned that there are 88 cases of identical pricing, including 23 cases with the participation of two companies, 47 cases involving three companies and 18 cases involving four companies.
The agency also alleged that the moves represented a “coordinated effort” to reduce the competition and were a “severe form” of violation of the competition legislation of the country.
As far as the fine is concerned, Aversi was fined ₾14.4 million ($5.3 mln), with Gepha issued a ₾20.3 million ($7.5 mln) penalty, PSP ordered to pay ₾17.0 million ($6.3 mln) and Mermisi penalised ₾951,301 ($354,332).
Speaking specifically, Minister of Health Zurab Azarashvili said the price-fixing meant consumers had been “left without medicines” as “artificially increased” prices on oncological drugs from the four companies resulted in “premature expiration” of limited state funds designated for the medicines.
The minister also said that the offence is very serious. The matter proves the companies clearly engaged in agreements for specific medicines.
On the other hand, the Ministry said the practices amounted to “unhealthy competition, artificial increase in prices, concerted actions and artificial shortage of medicines” from the companies.
It noted they involved medicines not yet covered by the state reference price policy and sold at prices set at “3,000, 2,000 and 1,000 per cent” of their intended cost.
The body further added the “dishonest actions directed against the state and its citizens” were “unacceptable” and added it would show “strict response to each violation”.
The Agency also noted that the information made public on March 23 by the Ministry about price hikes and the price-fixing of the medicines by importers and distributors of oncological medicines had served as the basis for its investigation.
