AS326 - REGULATION OF SALE OF PHARMACEUTICALS
PRESS RELEASE
PRESS RELEASE
ANTITRUST RECOMMENDS A REVIEW OF REGULATIONS ON THE SALE OF PHARMACEUTICALS
AND THE OWNERSHIP OF PHARMACIES AS A STEP TOWARDS REDUCING PRICES
Submission to Parliament and the Government
Open up the distribution of pharmaceutical products to competition so that a more open market may benefit consumers. This was the request made by the Italian Competition Authority, following its meeting of 8 February 2006, in a submission to both Houses of Parliament and to the Government.
In particular, the Authority deems it necessary:
1) To eliminate the rules on incompatibility between wholesaling and retailing of pharmaceuticals. The integration of these two activities could lead to cost savings in the distribution chain and, by introducing greater competition to the retail market, could encourage discounting which would in turn lead to lower prices to consumers for para-pharmaceutical products and for a large proportion of pharmaceuticals.
2) To review existing regulations which limit the ownership of a commercial pharmacy to a pharmacist. In the Authority’s view, this could help to bring about a general and effective opening of the market, making way for new entrants into the distribution chain without putting the public’s health at risk. For that purpose, it is sufficient to retain the rule that the person dispensing medicines in a pharmacy should be a qualified pharmacist.
3) To do away with the prohibition on owning more than one commercial pharmacy. This would give impulse to the market and allow pharmacists themselves and groups of pharmacists to set up pharmacy chains. The presence of more efficient players who would be on a par with the companies managing municipal pharmacies (who may own a number of outlets) would create healthy competitive pressures to the benefit of consumers.
In the submission, which was prompted by the “incompatibility” between wholesaling and retailing of medicines as foreseen in the draft legislative decree dealing with Directive 2001/83/CE (which is before Parliament), the Authority, even though Parliament is about to be dissolved, stresses once again the need for a profound reform of the pharmaceutical distribution chain. The Authority also draws attention to the fact that the European Commission has formally requested that Italy modify its regulations on incompatibility and on the restriction of activities in the pharmaceutical distribution sector because those regulations conflict with Articles 43 and 56 of the EC Treaty.
Rome, 10 February 2006