CADE recommends conviction of pharmaceutical companies in international cartel

On 29 November, the Office of the Superintendent General of CADE (SG) recommended the conviction of 4 companies and 3 individuals for international cartel in the chain of production and distribution of goods with the substance found in antispasmodic drugs.

According to the SG, the cartel affected mainly the supply chain and sales of SNBB (scopolamine N-butylbromide), a raw material sold to manufacturers of pharmaceutical products. 

The group coordinated actions to make anticompetitive agreements establishing a limited production and sale of SNBB, price-fixing, and entry barriers for new competitors. The practices aimed to protect geographic markets or preferred customers to consolidate market control.

The practices started in the 90s and continued until 2019. The investigation showed that seven companies and their representatives exchanged sensitive information by email, and promoted bilateral and multilateral in-person meetings. The analysis also revealed that the competitors maintained contact in a systematic, frequent, and formal manner.

CADE signed several cease and desist agreements with the companies Boehringer Ingelheim Pharma Gmbh & Co. KG and TransoPharm Handels GmbH, with the payment of BRL 24.4 million as financial contributions.

The proceeding will be submitted to the Tribunal of CADE and assigned to a Rapporteur for a close analysis and subsequent adjudication. If convicted, the companies are subject to fines up to 20% of their turnover, while administrators can be fined up to 20% of the amount imposed to their company.

Access Case no. 08700.004235/2021-28.