Pfizer Australia faces antitrust accusations

Australia’s antitrust regulator has launched proceedings against Pfizer’s Australian arm, accusing it of abusing its power when supplying cholesterol-lowering drug atorvastatin to pharmacies.

The Australian Competition and Consumer Commission (ACCC) said that Pfizer offered “significant discounts” and paid rebates accrued on atorvastatin’s originator product, Lipitor, on the condition that pharmacies acquire a minimum 12 month supply of its generic product.

Pfizer started making these offers as the patent covering Lipitor’s active ingredient expired in 2012. Before the patent expired, Lipitor was prescribed to 1 million Australians, and made annual sales of AU$700 million ($633 million).

“The ACCC alleges that Pfizer engaged in this conduct for the purpose of deterring or preventing competitors in the market for atorvastatin from engaging in competitive conduct, as well as for the purpose of substantially lessening competition,” said ACCC chairman Rod Sims.

“Deterring anti-competitive conduct is an ACCC enforcement priority because of the harm that it can cause to the competitive process and ultimately to consumers, particularly with such a widely used product.

“This case also raises an important public interest issue regarding the conduct of a patent holder nearing the expiry of that patent and what constitutes permissible competitive conduct,” he continued.

The ACCC said it is seeking pecuniary penalties, declarations and costs.

A spokesperson for Pfizer told LSIPR: “Pfizer does not ordinarily comment on matters that are before the court. Pfizer believes strongly that the offers referred to by the ACCC were competitive. We will vigorously defend the proceedings.

“As the matter is before the court, it is inappropriate for us to comment further.”

A directions hearing is due to take place on March 18 in the Federal Court of Australia in Sydney.