Cofece files a class action lawsuit against large medicine distributors

The Federal Economic Competition Commission (Cofece) filed a collective action against Casa Marzam, Casa Saba, Fármacos Nacionales and the Association of Distributors of Pharmaceutical Products of the Mexican Republic, a measure with which it seeks that companies involved in anti-competitive practices in The medicine market pays close to 2,316 million pesos, resources that must be allocated to the IMSS-Wellbeing.

The autonomous organization, which is at risk of disappearing, filed for the first time since it was created in 2013, a lawsuit of this type in order to compensate for the damages that were generated after the aforementioned business organization and the three distributors drug companies agreed for 10 years not to distribute medications during certain days of the year, limit the amount of medications dispensed to pharmacies and manipulate sales prices and restrict discounts to pharmacies.

These behaviors reduced the availability and increased the prices of medicines in the country.which generated damage estimated at more than 2 billion pesos,” said Cofece.

Faced with a new competition policy to exercise its powers, the regulatory body seeks through collective actions that those involved pay 2,316 million pesos to repair the damage.

He recalled that in 2021 he imposed sanctions of 903.4 million pesos on several companies and 21 individuals, the maximum fine allowed by law. In addition, it disqualified 10 managers involved in the anti-competitive agreements.

In the lawsuit filed yesterday, he asked the Judiciary that the resources be allocated to the IMSS-Bienestar, so that they serve to attend to the health of all Mexicans, which was the sector where the damage was suffered.

He highlighted that it is intended that the resources that are recovered be directed to the public sector because the poorest households spend a greater percentage of their income on medicines, which is why the surcharges affect those who have the least more.

He noted that Cofece serves as representative of the affected community and absorbs all costs derived from the judicial process.

Meanwhile, the Mexican Social Security Institute (IMSS) welcomed the first collective action lawsuit filed by Cofece against drug distributors.

The IMSS recalled that on March 10, 2016, it filed a complaint with Cofece for similar practices in order for the organization to exercise its power to safeguard the economic competition process and determine the commission of possible monopolistic practices.

He indicated that since June 2023 he has had a direct and consistent relationship of collaboration with Cofece which has included meetings with the president commissioner, Andrea Marván Saltiel, and different work teams.

Thus, four strategic lines were defined: exchange of market research information, support in the design of contracting procedures, exploring mechanisms to be included in contracting procedures to ensure the commitment of participants not to incur violations of the law, as well as explore options to identify economic agents sanctioned by Cofece.