The Competition Commission of India’s (CCI) has recently levied penalty of INR 74.63 Crores on a major pharmaceutical company for refusing to appoint a stockiest in Kerala unless a “No Objection Certificate” (NOC) was obtained from the local Chemists and Druggist Association. The order rings alarm bells as it is the first time the CCI has penalized a Pharma manufacturer for following the diktats of a trade association. This order has far reaching implications on the business conduct of Pharma companies as more such penalties are expected for pharmaceutical companies who fail to resist the diktats. Besides, the CCI is also initiating a Pharma Sector Inquiry to undertake a Baseline Study/ Survey in the pharmaceutical sector and healthcare delivery systems/services in Delhi & NCR Region to collect evidence on competition issues by way of online questionnaire, field study etc. The survey will uncover issues such as non-availability of essential medicines, increasing price of drugs, nexus between pharmaceutical companies and pharmacists, nexus between pharmacists and doctors, nexus between doctors and pathological laboratories, nexus between doctors and pharmaceutical companies, and nexus between hospitals and insurance companies etc. The results arrived after the survey may become the basis for initiation of formal investigations.
Pay for Delay Agreements – Secretive arrangements between originator and generic pharmaceutical manufacturers – meant to delay the entry of generic drugs in the market- have been a cause for serious concern for competition regulators around the World. Significant fines have been imposed by competition agencies for such agreements on both originator as well as generic Pharma manufacturers
.Please also read our article published on this issue in The Financial Express on 5th April,2016 here
THE WEBINAR: KEY TAKE-AWAYS
The Webinar will be conducted by Mr.MM Sharma , Head- Competition Law and Policy (Vaish Associates, Advocates), along with Ms. Meera Vanjari , Sr. Vice President and General Counsel, Glenmark Pharmaceuticals Ltd. as the Industry expert/Co-Panelist. The webinar shall be divided into two sessions, each followed by an Interaction with participants.
Session I: 4.00 PM to 4.45 PM– This session will focus primarily on (i) CCI’s intervention in the pharmaceutical sector against chemists trade associations’ diktats; (ii) its impact on Pharma companies; AND (iii) the likely consequences of the Pharma sector inquiry.
Interaction: 4.45 PM to 5.30 PM – Q&A s and Discussion with participants.
Session II: 5.30 PM to 5.45 PM– This session will focus on issues arising out of “pay-for-delay” agreements and international experience so far.
Interaction: 5.45 PM to 6.00 PM – Q&A s and Discussion with participants.
Overall, the webinar shall focus on the following main issues: Within the Pharma industry, what type of conduct is considered anti-competitive by the CCI? Whether it is right for the Chemists and Druggists Associations to insist for obtaining a NOC from them before appointment of new stockists / dealers by drug manufacturers? What is the solution for pharmaceutical companies when accused of complicity with the chemists associations, while trying to safeguard their legitimate business interests? How can the pharmaceutical companies prevent penalties being imposed upon them by CCI? What will be the likely impact of the sector inquiry initiated by CCI in to the Pharma sector? Whether “pay for delay” agreements violate Competition Law? How can leniency program of the CCI help the violators in claiming immunity or reduction in fines?
WHO SHOULD ATTEND
In-House Counsel of Pharma Manufacturers
Office-bearers of Chemist and Druggist Associations
Legal and Compliance Officers
Chief Financial Officers
Carrying and Forwarding Agents.
Kindly note that due to limited number of slots available, prior registrations are mandatory and will be accepted on a “first-come-first-serve” basis. Please join the webinar by clicking the link to the webinar given on the top and filling the details in the appropriate places. .
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