Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canada Competition Bureau discontinues probe of allergy drug supply, (May 13, 2014)
Organizations Mentioned:Alcon Canada Inc.
The Canada Competition Bureau announced today that it has discontinued its investigation of alleged anti-competitive conduct by Alcon Canada Inc., related to the supply of its prescription anti-allergy drug, Patanol, which raised concerns under the abuse of dominance provision of the Competition Act.
In November 2012, the Bureau began investigating whether Alcon implemented a strategy known as “product switching” or “product hopping,” which includes intentional disruption of the supply of a brand name drug to limit or prevent meaningful competition from generic drug companies. When faced with the prospect of competition from a therapeutically-equivalent generic drug, the branded pharmaceutical firm will introduce a reformulated version of its drug, protected by one or more additional patents, and remove its original drug from the market in order to force consumers to alternative treatments.
The Bureau’s investigation involved making multiple market contacts; gathering relevant information from industry participants and various government agencies; reviewing data and consulting with experts; and obtaining a court order requiring Alcon to produce information relevant to the investigation.
In its position statement, the Bureau concluded that Alcon ceased engaging in the conduct that raised concerns shortly after the Bureau began its investigation and resumed supplying Patanol to the Canadian market in January 2013. By May 2013, at the beginning of the allergy season, Patanol sales were back in line with sales prior to the supply disruption. Competitors have entered the market with generic versions of Patanol and have captured a significant market share, according to the Bureau.
Since the competitive dynamic appears to have been restored to the market—and the temporary conversion strategy does not appear to have delayed generic entry—the Commissioner decided to discontinue the inquiry.
Companies: Alcon Canada Inc.
News: Antitrust