CCI closes case of alleged violation of antitrust law against Vifor

The Competition Commission of India (CCI) has ordered the closure of case against Vifor, a Swiss pharmaceutical company and a global leader in the treatment of iron deficiency, as it found no contravention of provisions of competition law by the company.

It maybe recalled that a complaint was filed against Vifor for allegedly engaging in de facto exclusive licensing agreements to grant licenses for injectables for treatment of iron deficiency anaemia (iron deficiency medicine) with an aim to foreclose price and non-price competition in the entire pharmaceutical supply chain. 

It was also alleged that Vifor had abused its dominant position by restricting the production and supply of iron deficiency medicine and enabling it to charge higher prices from the patients.

CCI examined the license agreement between Vifor and Indian Companies and, noted that clauses of the agreement did not appeared to be one sided or unreasonable in relation to protection of right of a patent holder qua its licensees. 

CCI also noted that these license agreements entered into by Vifor are not of a long-term nature but entered into for a limited period of three years with provision for extension upon expiry and also there is no restriction that Vifor cannot enter into more licensing arrangements. 

The CCI did not find the termination clause contained in agreements to be prima facie erroneous on the licensees so as to place them at any disadvantageous position. 

The CCI also ruled out that the construct of the market impedes the free entry of other manufacturers of soluble iron injectables, independently or through Indian pharma companies. 

On price discrimination, CCI has observed that all price differentiations may not be discriminatory, more so when the same is based on reasonable classification of consumers to which they are offered. Prices offered in government procurement may not be comparable with the products being sold in open market. 

Accordingly, no case of contravention of provisions of the Competition Act was made out against the Vifor, and the matter was ordered to be closed forthwith.