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Ilyashev & Partners Wins an Action Against the Antimonopoly Committee of Ukraine in the Supreme Court on the Inequivalence of Agreements with Wholesale Buyers of Immunoglobulin Preparations

News date: 14 July 2020

The antitrust practice team of Ilyashev & Partners Law Firm defended the interests of the leading Ukrainian pharmaceutical manufacturer Biopharma in a case involving an alleged violation of legislation on the protection of economic competition in the national market of immunoglobulins.

In July 2019 the Antimonopoly Committee of Ukraine (hereinafter – the AMCU) adopted Decision No. 526-р in the case No. 143-26.13/68-18/91-13 on violation by PrJSC Biopharma and Pharmaceutical Plant Biopharma LLC of legislation on the protection of economic competition by the abuse of monopoly (dominant) position. As a result of considering the case it imposed fines on Pharmaceutical Plant Biopharma LLC for the alleged use in the equivalent contracts with wholesale buyers / distributors of the medicines of different payment deferment terms.

In order to defend the interests of the client Ilyashev & Partners appealed against the AMCU decision to the commercial court. Ilyashev & Partners represented the interests of Pharmaceutical Plant Biopharma LLC at all stages of litigation, including in the Supreme Court.

By its Resolution dated 9 July 2020 the Supreme Court put an end to the dispute: it confirmed the legitimacy of actions of the pharmaceutical manufacturer and revoked the decision on imposition of fines, upholding the decisions taken earlier by the court of first instance and court of appeal.

“The Supreme Court concluded that the AMCU analyzed unequal agreements, – commented the Partner, Attorney and Head of Antitrust and Competition Practice Oleksandr Fefelov. – Given the position of the Supreme Court, which has flawlessly clarified the situation, the contracts for purchase and sale of goods with the aim of participating in tender cannot be considered equivalent to those where the goods were purchased for further distribution, but in other ways. In addition, the AMCU failed to confirm the presence of an adverse impact on competition between the distributors, since the payment terms were actually equal, fair, beneficial for all buyers, and not a single fact of competition distortion was recorded”.

Pharmaceutical Plant Biopharma LLC is a Ukrainian pharmaceutical company specializing in the development and production of innovative high-tech medicinal products from human donated blood, recombinant drugs and drugs based on spore-forming bacteria.