STATE KILLING IS COMMITTED WITH RESPECT TO DRUG SELLING COMPANIES, DIRECTOR OF VAGAPHARM SAYS

NOYAN TAPAN
DECEMBER 25, 2009
YEREVAN

YEREVAN, DECEMBER 25, NOYAN TAPAN. "State killing is committed with
respect to drug selling companies," Founding Director of Vagapharm
company Vahe Varsanian declared at the December 25 press conference,
when commenting on the recent decision of the RA State Commission
for the Protection of Economic Competition, under which companies
shall be fined in the amount of 2% of their profit in the previous
year for raising drug prices groundlessly.

V. Varsanian said that in 2009, for months on end the importers were
selling 30% of drugs at prices lower than their cost prices and
therefore they incurred losses. During that period the Commission
conducted checks at these companies and saw that the price of the
most expensive drug exceeded its cost price by only 15-20%, whereas in
other countries this index makes nearly 60%. Besides, according to V.

Varsanian, there are 7-8 drug selling companies in Armenia, and under
the current competition conditions a company will suffer in case
of raising drug prices as it will lose its buyers. As regards the
possibility of reaching an agreement with each other, V. Varsanian
excluded such a possibility. He indicated the rise in prices by
foreign drug manufacturers and wholesalers as the objective reason
for the growth in drug prices.

In the words of Vagapharm’s director, the Commission decided to fine
the indicated companies without any reason, "for show". V. Varsanian
and Deputy Director of Argopharm company Gurgen Asrian announced they
will appeal to the Administrative Court against that decision.