Agenda

U.S. COMPETITION AUTHORITY BROUGHT THE MATTER AGAINST VYERA TO THE FEDERAL COURT

31/01/2020

U.S. Competition Authority, Federal Trade Commission, has launched a investigation before the Federal court for Vyera Pharmaceutical (Vyera) due to astronomically increased price of drug is known as Daraprim.

Daraprim is a drug that used for treatment of parasite infection known as toxoplasmosis. Mentioned parasite can cause fatal damage to the brain and lungs in people whose immune system is not strong for example people who have HIV/ AIDS virus or cancer patients and patients who are waiting for organ transplantation.

After the acquisition of Daraprim, Vyera took the following actions that would monopolize in the market:

  • Increasing the price of daraprim per tablet from 17.50 USD to 750 USD,
  • Preventing generic drug manufacturers accessing Daraprim and making bioequivalence test by way of restrictive distribution agreements,
  • Preventing being learned by competitors to active ingredients in the content of Daraprim.

FTC evaluated these actions taken by Vyera as competition violations to protect the monopolistic structure in the market and so FTC brought the matter to the Federal District Court on 27 January 2020.