India: CCI probes alleged diabetes drugs cartel

Four leading pharmaceutical companies are facing heat from the Competition Commission of India (CCI) over alleged price fixing of popular anti-diabetic drug Vildagliptin, a media report citing sources said on Thursday, December 14.

The four drug makers – Novartis, Abbott, Emcure Pharma and USV – have been served notices by the CCI seeking trade details of the drug to ascertain if the companies indulged in price cartelization.

The Economic Times reported that Swiss drug maker Novartis has confirmed receiving a notice from CCI and that it has responded to it. “Given that the matter is sub-judice, you will appreciate that we are unable to comment any further,” a company spokesperson said.

The report said the fair play regulator is also looking closely at the role of some senior executives.

The development comes nearly a year after a whistle blower sounded out Indian regulators with details of the alleged cartelisation for the drug by these pharma companies.

In February this year, the whistle blower had reached out to authorities alleging that Novartis controls Vildagliptin’s pricing structure, which is followed by the other licence holders, where the drug prices are matched to the lowest decimal.

Full Content: Economic Times

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