Boehringer Ingelheim Pharmaceuticals denied on Friday it has abused a dominant position in the market to the detriment of consumers, and charged excessive prices for its products as claimed by the Competition Commission.
“We shall avail ourselves of the opportunity, given by the commission, to discuss the matter further. This will be done as a matter of great urgency,” the company said in a statement.
On Thursday, the commission said it had found Ingelheim, as well as GlaxoSmithKline South Africa, in contravention of the Competition Act and referred the matter to the Competition Tribunal for determination.
The two companies were found to have abused their dominant positions in their respective anti-retroviral drugs markets.
They violated the Act’s prohibitions against excessive pricing, refusing access to essential facilities, and exclusionary acts that have an anti-competitive effect that outweighs technological, efficiency or other pro-competitive gains, the commission said.
In its statement on Friday, Ingelheim said the commission’s findings were in stark contrast to its findings on a similar complaint against the company in November last year.
“We shall attempt to clarify what is behind this significant change in the interpretation of the Act,” it said.
The company denied refusing to license its patents to generic manufacturers in return for a reasonable royalty.
“The correct situation is that Aspen Pharmacare has been given access to our patent under a non-exclusive voluntary license. The generic product resulting from this agreement is in the process of being registered by the Medicines Control Council.
“Aspen Pharmacare has been given rights to provide the product to the state sector, namely to that sector of the market that caters largely to the uninsured patient, and where the greatest need resides.
“Again we stress, should the government implement its planned roll-out programme for the management of patients living with HIV, we shall additionally offer to supply Viramune for use in this programme at special prices which take into consideration the special needs of the state market.
“It is in this state sector of the market that the major need for anti-retrovirals exists, and it is for this reason that we have agreed to provide Aspen Pharmacare with a voluntary license to service this sector,” Ingelheim said.
The company holds patents in South Africa on nevirapine (branded as Viramune).
GlaxoSmithKline holds patents in South Africa on AZT (branded as Retrovir), Lamivudine (branded as 3TC) and AZT/Lamivudine (branded as Combivir). — Sapa
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