Competition Council's decision

November 26, 2014

The Competition Council has today found that the two full-line wholesalers Nomeco and TMJ, delivering pharmaceuticals to the pharmacies, coordinated fees and other terms and thus violated the prohibition against anti-competitive behavior. Briefly, the Council believes that Nomeco and TMJ has coordinated its behavior in relation to the rules for the return and credit of the approximately 1.4 million. packages that each year are returned by pharmacies to producers and importers. Furthermore, the Council believes that Nomeco and TMJ has coordinated procedures for cost credits to pharmacies in connection with pharmaceuticals falling in price.

Nomeco is firmly opposed to the Council's decision and is baffled by the premises that underlie the decision.

The procedures for the return and credit the pharmaceuticals developed in the 1990s in collaboration between pharmaceutical manufacturers, pharmaceutical wholesalers and pharmacies. This happened in a time when such trade agreements were fully legal. The procedures continued as an industry practice as they then, as now supports the special Danish system with 14-day tender on pharmaceuticals. In 2002, the wholesalers, a correction to the procedure. But in areas where potentially or currently allow for competition, Nomeco has continually changed its practice and individually negotiated with pharmaceutical suppliers, which themselves have asked Nomeco handle returns from and credits of pharmacies other than that which is the starting point in the procedures .

"The procedures surrounding the return of medicines is only intended to get pharmaceutical supplies to Danish patients to slip in the best and most rational way. At the same time supports the procedures the current 14-day tender on pharmaceuticals that health authorities will execute and manage. Thus they contribute to ensuring that Denmark has some of Europe's lowest pharmaceutical prices, "says Director Henrik Kaastrup, Nomeco.

He also emphasizes that Nomeco has had some competitive advantage by the fact that the Competition Council suggests. "They have not affected the sales of pharmaceuticals - either in terms of quantity or price level. Ministry of Health and the rest of the industry has known since the 1990s to the procedures, and the alleged coordination has in any case been brought to an end many years ago. Furthermore, it could only technical in nature and so are not related commercial matters in relation to the handling of the return and credit. "

Henrik Kaastrup is fret about the failure of explaining the complex market mechanisms for the Competition and Consumer Authorities. This has unfortunately after Nomeco's opinion meant that the Danish Competition and Consumer Authority has based its conclusions on false premises.

"Nomeco recognize the Competition Council's decision, and we will adapt our terms to comply with the Competition Council. For us it is important to ensure that we continue to facilitate the Danish pharmaceutical supply, which is characterized by the supply, quality and low prices. Nomeco's task has been to ensure a cheap, flexible and efficient pharmaceutical distribution - and this has not changed with the decision today, "says Henrik Kaastrup.

For further comments please contact Henrik Kaastrup, tel. +45 29 44 86 49, or communications Merete Wagner Hoffmann, tel. +45 21 46 18 38