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The Competition Council analyzes the pharmaceutical market in Romania

The Competition Council has initiated a new sector inquiry on pharmaceutical market in Romania
to analyze and correct potential malfunctioning of anti-competitive nature.

The study completed by the Competition Council in 2011 revealed that innovative medicines on
some markets were sold mostly. Although their intellectual property rights expired and generic
medicines (the same active ingredient, but cheaper) would have had to gain market share to the
detriment of innovative medicines, this does not happen.
Consequently, the sector inquiry will include an in-depth analysis of the current level of generic
medicines penetration.

"We would like to see whether in recent years the penetration of generic products on the market
has improved. Moreover, this action is in line with the Commission's concerns which is interested
in any action of large pharmaceutical companies to block the entry on the market of cheap
medicines, so-called generic medicines" says Mr. Bogdan Chirioiu, President of the Competition
Another aspect to be considered during the sector inquiry refers to the change of medicines
distribution system. Many medicine producers have expressed their intention to switch from
traditional distribution model, which is achieved through more distributors, to a model that will
be achieved directly by producers or by a small number of distributors.

The major difference from the classical system is that all trading conditions granted to pharmacies
and / or to hospitals will be set directly by the producer and not by the distributor as before. Thus,
the sector inquiry will assess whether this change in the distribution system raise problems in
terms of competition The Competition Council recommends to all companies involved in the
distribution of pharmaceutical products in Romania, producers and distributors, not to make
changes in the actual structure and distribution system until the competition authority complete
the sector inquiry and issue guidance on distribution so that the competition rules to be observed.

Also, the analysis will allow the Competition Council to ground its viewpoints according to


legislative and policy changes that are expected in this sector and for which competition authority
is required to issue an opinion.
Within the sector inquiry, the Competition Council may request information, documents or
statements from the stakeholders involved. Consequently, the Competition Council stimulates an
active cooperation with all stakeholders in the sector (i.e. public institutions, undertakings) and is
ready to receive any relevant information within the procedure.

March 2013
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