Armenian Pharmaceutical Companies Will Appeal The Decision Of The Pe


DECEMBER 25, 2009

YEREVAN, December 25. /ARKA/. Armenian pharmaceutical companies
are going to appeal the decision of State Committee on Protection of
anti-competitive agreement and increase of prices. In the result of the
decision 7 companies will pay 460 million drams to the state budget.

Administrative case of the Committee resulted in many publications in
mass media and complaints of the citizens on abrupt increase of prices
for medicine in the period of September-November 2009. Violations
of the law in the market of cardio-vascular, anti-diabetes and
anti-virus medicaments was detected in eight companies – "Natali
pharm", "Eskulap", "Alfa pharm", "Vaga pharm", "Argo pharm", "Amikus"
and "Arpharmatsia".

The above-mentioned companies were penalized in the amount of 2%
from the income of the companies of the last year, not more than
300 million drams. Vahe Varsanyan, Founding Director of "Vaga pharm"
said that the Committee didn’t submit any facts proving the presence
of anti-competitive agreement and basis for the increase of prices
as there were no agreements between the companies in the market.

"Such an approach of the Committee is intended which was targeted at
the broad auditorium for the support of state structures which will
bring to "state killing" of the companies which occupy less than 0.2%
of the market", he said. In fact increase of prices for medicine
in the Armenian market was conditioned by the increase of prices by
wholesale companies which reflected on the final price of medicine
through relevant indexation.

After abrupt variations of currency rates in the Armenian market in
March 2009 some companies decreased prices of some medicine, in the
result of which other participants of the market had to sell medicine
by cost price. Varsanyan said that from September the situation was
somehow changed and prices for some kinds of medicine were increased
by 10-15%. One of the factors influencing on the changes of prices
was the increase of prices of producers and wholesale importers which
resulted in the final cost of the product. "The Committee made a show
and played with our reputation and we are going to appeal this decision
in the court. We hope that this issue will be solved amicably. ($1 –
376.92 drams). G.K.
From: Baghdasarian

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