To avoid concentration of pharmaceutical companies, regulations on mergers of companies are introduced
31 enero 2018

The legislator, Jorge Alfonso Del Castillo Gálvez, from the Aprista Party (Partido Aprista), drafted a bill to regulate mergers and acquisitions to promote competition between business. The purpose of the bill is to establish a procedure for the prior evaluation of business concentration operations, so that they do not constitute a restriction on competition. The current Minister of Health had asked to regulate these initiatives.

The company InRetail Peru, which belongs to the Intercorp group, bought its competitors Mifarma, BTL and Fasa. In this context, several political referents spoke against, and the legislator Del Castillo Gálvez introduced a preliminary bill with the objective of regulating and evaluating this type of transactions.

The Minister of Health, Abel Salinas, asked Congress to discuss the legislative initiative to ‘regulate this type of mergers, and not to allow a domination of the market that could have an impact on the citizen’. In this way, the president of the Economy Committee of Congress, Guido Lombardi, supported prioritizing the preliminary draft of the legislator Del Castillo. “What is demonstrated by the acquisition of pharmacy chains is the need for a bill of this nature,” he added.

In the same line, the Minister of Economy, Claudia Coopet, considered that ‘the abuse of a dominant position can not be allowed’ and former President Alan García said that ‘all concentration is abusive.’ ‘Drugs are very expensive in Peru, but they will be much more if 90% of the pharmacies are owned by a single company. A writ of amparo is needed against this’ he added.