FAS of Russia identified unjustified 35% overpricing of Tyverb

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Novartis Pharma unreasonably increased the price of a patented cancer drug (by raising the price by almost 35% up to 159 thousand rubles for package). In April 2017, the Federal Antimonopoly Service (FAS) of Russia initiated a case on the grounds that Novartis Pharma had violated Clause 1 of Part 1 of Article 10 of the Law on Protection of Competition.

As part of the investigation, the company had to justify the increase in the price of Tyverb (INN: Lapatinib) from 118 thousand to 159 thousand rubles a package. The drug is used for the treatment of malignant tumors.

After examining the case, the Commission of the FAS of Russia came to the conclusion that, while holding a dominant position in the market of medicinal product with INN of Lapatinib in the Russian Federation, the defendant has set a high monopoly price for the drug. The Commission of the FAS of Russia decided to issue an order to eliminate the identified violation.

“Tyverb (INN: Lapatinib) is not included in the List of Vital and Essential Drugs (VED), i. e. its price is not regulated by the state. In this regard, the case initiated at the request of the Moscow City Government, which buys Tyverb to provide patients under the program of state guarantees, sets a precedent. We hope that the pharmaceutical community will take notice of the decision of the FAS of Russia and refrain from manipulating the prices of drugs, including those not in the List of VED,” said Timofey Nizhegorodtsev, the Head of the Department for Control over Social Sphere and Trade at the FAS of Russia.