SOME PHARMACEUTICAL COMPANIES IN ARMENIA FINED FOR ANTICOMPETITIVE COLLUSION AND UNJUSTIFIED PRICE RAISE

ARKA
Dec 22, 2009

YEREVAN, December 22. /ARKA/. On Monday, Armenian State Commission
for Protection of Economic Competition decided to fine a number of
pharmaceutical companies for anticompetitive collusion and unjustified
price raise.

David Hovhannisyan, chief of the commission’s analysis division, said
that the commission has grounded its decision on numerous complaints
and media reports about precipitous increase in prices for medicaments
over the period between September and November.

Natali Pharm, Aesculapius, Alfa Pharm, Vaga Pharm, Argo Pharm, Amikus
and ArmPharmatsia say that they raised prices because of devaluation
of the dram in recent months.

But, as Hovhannisyan said, Armenian national currency weakened neither
against the euro nor the dollar in recent months.

He said that anticompetitive collusion is simultaneous and groundless
price raise by several companies.

The wrongdoer companies ought to pay a fine equal to 2% of their 2008
earnings, but no greater than AMD 300 million.

The companies said they would lower prices.

Asatur Asatryan, director of Natali Pharm, said the price raise
has been prompted by some factors, such as foreign exchange rates,
things on world markets and profits.

He denied accusation of involvement in the collusion saying that
all these companies have raised prices simultaneously because they
imported drugs from the same markets and depended on the same economic
conditions.

Arhur Grigoryan, director of Alfa Pharm, blamed the commission for
a shallow analysis and premature inferences.

He found the commission’s decision groundless. ($1 = 357.14).