Drug firm denies abusing position - Boehringer, GlaxoSmithKline - SA

Boehringer Ingelheim Pharmaceuticals denied on Friday it has abused a dominant position in the market to the detriment of consumers, and charged excessive prices for its products as claimed by the Competition Commission.

"We shall avail ourselves of the opportunity, given by the commission, to discuss the matter further. This will be done as a matter of great urgency," the company said in a statement.

On Thursday, the commission said it had found Ingelheim, as well as GlaxoSmithKline South Africa, in contravention of the Competition Act and referred the matter to the Competition Tribunal for determination.

The two companies were found to have abused their dominant positions in their respective anti-retroviral drugs markets.

They violated the Act's prohibitions against excessive pricing, refusing access to essential facilities, and exclusionary acts that have an anti-competitive effect that outweighs technological, efficiency or other pro-competitive gains, the commission said.

http://www.mg.co.za/Content/l3.asp?ao=22195&t=1

Sounds like a good idea. Maybe we should try it in the US.