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India: Competition body cracks down on GSK

By  |  June 11, 2015

Citing an anticompetitive agreement that was “clearly made out,” India’s Competition Commission took issue with GlaxoSmithKline and Sanofi’s operations in the country this week and fined the international pharmas nearly $10 million.

The body ordered GSK to pay $9.4 million in fines and to “cease and desist” its “collusive bidding” practices in supplying the government a meningitis vaccine for approximately 200,000 Haj pilgrims annually. Sanofi was fined about $500,000.

The complaint, focusing on the supply of polysaccharide Quadrivalent Meningococcal Meningitis vaccine, was brought by local vaccines firm Bio-Med and also implicated India’s Health and Family Welfare Ministry in the process. Each year, the Indian government solicits bids for the purchase of the vaccines that are required to be given to the Haj pilgrims.

In its finding, the competition commission said that the parties failed to establish independent business decision-making.

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