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03 March 2005
In December 2004 the Federal Competition Commission began an investigation into potentially anti-competitive practices in the pharmaceutical industry. The investigation is the result of a complaint filed by multinational company Roche-Syntek against Grupo Saba and Nadro, two pharmaceutical distributors that between them enjoy a 60% market share.
Allegedly, the two companies have pressurized pharmaceutical companies to reduce the prices imposed on distributors for the purpose of increasing their own profit margins. The problem appears to have its basis in the fact that the principal pharmacy chains sell drugs at very competitive prices, which equals low margins for distributors.
The practice in question is thought to be widespread. Therefore, it would not be surprising if other companies, including GlaxoSmithKline, Bristol-Myers Squibb, Aventis Pharma, Abbot Laboratories, Merck Sharp & Dohme and Eli Lilly Laboratories, also filed complaints.
For further information on this topic please contact Amílcar Peredo at Basham Ringe y Correa SC by telephone (+52 55 5261 0400) or by fax (+52 55 5261 0496) or by email (firstname.lastname@example.org).
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