ACCC Lipitor loss

THE Australian Competition and Consumer Commission has lost an appeal against an earlier judgement relating to Pfizer’s distribution of atorvastatin to community pharmacies in Australia.

The ACCC had alleged that in 2012 Pfizer breached the law by “misusing its market power to prevent or deter competition from other suppliers selling generic atorvastatin products to pharmacies”.

The company offered discounts and rebates based on previous Lipitor sales to pharmacies, but the deals were conditional on the outlets acquiring a minimum volume of Pfizer’s generic atorvastatin and agreeing to restrict their supply of competing generics.

The ACCC claimed Pfizer was misusing its position as the patent holder to prevent competition, and launched proceedings in Feb 2014.

When judgement was handed down a year later (PD 26 Feb 2015) the Federal court dismissed the case, saying Pfizer’s market power was “no longer substantial” when it made the offers and that the ACCC had failed to establish the company had aimed to deter competition.

The ACCC subsequently appealed, with the case heard in Nov 2015 and a ruling handed down on Fri in favour of the drugmaker.

ACCC chairman Rod Sims said the Commission was carefully considering the judgement, and “remains committed to pursuing cases involving anti-competitive conduct, particularly misuse of market power”.