The National Institute for the Defense of Competition and Intellectual Property (Indecopi) sanctioned 13 pharmaceutical laboratories and distributors, along with five of their executives, for having agreed on public bidding processes between December 2006 and February 2020 to raise the prices of essential medicines intended for the State.
The Commission for the Defense of Free Competition (CLC) of Indecopi imposed a joint fine of 100,852.72 UIT, equivalent to more than S/ 539 million, on the sanctioned companies. An additional penalty of 262.67 UIT was applied to the five executives involved, which represents more than S/ 1.4 million.
Indecopi determined that the companies colluded to manipulate the tenders called by the Ministry of Health (MINSA) and EsSalud, through strategic coordination of proposals and abstentions.
Among the pharmaceutical products affected are: sodium chloride solutions for rehydration, antibiotics such as amoxicillin, azithromycin, meropenem and dicloxacillin, as well as antineoplastics such as paclitaxel and temozolamide, immunosuppressants such as methotrexate, and antianemics such as ferrous sulphate.
The 13 companies sanctioned by Indecopi are:
- B Braun Medical Peru SA
- Chemotherapy Institute SA
- AC Farma Laboratories SA
- Sagitario SRL Drugstore Distributor
- American Laboratories SA
- Lansier Laboratories SAC
- Pharmagen SAC
- OQ Pharma SAC
- Laboratories Portugal SRL
- United Laboratories SA
- Medifarma SA
- Pereda Distributors SRL
- Teva Peru SA
During its investigation, the Commission analyzed electronic documents, emails, chats, telephone records and other evidence that demonstrated negotiations between the companies to divide up the contracts. To hide their actions, those involved avoided direct communication, used encrypted language and used pseudonyms to avoid being identified.
In addition to the economic sanctions, Indecopi required the sanctioned companies to implement free competition compliance programs for a period of 5 years, with the aim of preventing future acts of collusion.
The decision is in the first administrative instance, so companies and executives can still appeal to the Specialized Chamber in Defense of Competition of the Indecopi Court. If the administrative route is exhausted, the resolution could be taken to the Judiciary, according to the Free Competition Law.
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