GSK PREVAILS IN GREEK TRADE CASE

The Greek antitrust regulatory agency has dismissed a complaint filed against GlaxoSmithKline (GSK) by a group of pharmacists, wholesalers and distributors claiming the company improperly restrained trade in that country.

The complaint was based on GSK's decision to refuse to supply all drugs ordered by the companies between November 2000 and February 2001 and whether that constituted an abuse of competition rules. The Hellenic Competition Committee ruled that while GSK "abused its dominant position," the period of time was too short to show any damage to the Greek market.

However, the committee ruled, if GSK repeats this behavior in the future, it could result in a fine equal to 3 percent of the company's gross revenues from the previous year.

GSK hailed the decision, calling it a "vindication" of its efforts to fight parallel trade, the practice where companies buy drugs at a cheaper price in one country and resell them in another at higher prices.

"Today's decision recognizes that parallel trade in the context of the pharmaceutical industry across Europe, where prices are directly or indirectly controlled by EU governments, benefits primarily traders who pass on none or almost none of the price differences to patients and payers," GSK Pharmaceuticals Europe President Andrew Witty said.