ROCHE DIAGNOSTIC-ORTHO CLINICAL DIAGNOSTIC-BAYER-MENARINI-ABBOTT-ASSOBIOMEDICA
PRESS RELEASE
PRESS RELEASE
The Competition Authority is investigating an alleged agreement on test strips for diabetics
At its meeting on 12 April 2001 the Competition Authority began an investigation into the pharmaceutical companies which market diagnostic tests used by diabetic patients to self-test and monitor blood glucose levels. These tests comprise a reader device and reactive strips compatible with it.
The purpose of the investigation is to ascertain whether an agreement has been put in place to restrict competition prohibited by section 2 of the Competition Act (law no. 287/90) by the Roche Diagnostics, Bayer, Ortho Clinical Diagnostics, Menarini and Abbott companies, consisting in the following conduct:
1) interfering with tenders called by the Local Health Authorities for the acquisition of these products;
2) establishing market shares for blood glucose self-testing products;
3) setting and raising the selling prices of test strips.
The origin of this investigation was a complaint lodged by three Local Health Authorities which had discovered anomalies in tenders for the acquisition of these products submitted by these companies that prevented them from choosing the best bid, to prevent them from drawing any comparisons with competitors on the market.
Evidence gathered prior to the investigation revealed that the manufacturers' association, Assobiomedica, had intervened representing all these companies to set the selling prices of the test strips.
The Authority is also charging the Ortho company with abuse of a dominant position within the meaning of section 3 of the Competition Act, in relation its conduct regarding the CGA Strumenti Scientifici company. Ortho would appear to have acted to prevent CGA from marketing test strips that can be used with Ortho's blood glucose monitor.
The conduct described seems to have raised the prices of the test strips, damaging the Local Health Authorities which refund almost the full price to diabetic patients. Diagnostic tests are routinely used by about one million diabetic patients (about 50% of all diabetics). The demand for test strips to monitor blood glucose levels has risen sharply in recent years, with a 1999 turnover of about 180 billion lire.
Rome, 26 April 2001