WSJ/Indonesian Agency Accuses Pfizer of Monopoly Breach
By JOKO HARIYANTO And ANDREAS ISMAR
JAKARTA - Indonesia's antitrust agency, KPPU, said Tuesday it has found U.S.-based Pfizer Inc., four of its units and a local firm guilty of breaching monopoly regulations on their anti-hypertensive products.
Pfizer, its units and local firm PT Dexa Medica used their dominant market position for anti-hypertensive products to overcharge consumers, the KPPU said.
The KPPU has ordered Pfizer and its subsidiaries - PT Pfizer Indonesia, Pfizer Overseas LLC, Pfizer Global Trading and Pfizer Corporation Panama - to pay a maximum fine of 25 billion Indonesian rupiah ($2.8 million) each, while Dexa Medica has been asked to pay a fine of 20 billion rupiah.
"The firms have arrangements which influence prices, production and marketing, and resulting in monopoly practice. They have abused their dominant position," said Ahmad Ramadhan Siregar, a judge with the KPPU commission that delivered the verdict.
"The price of Norvask in Indonesia is 14.6 times higher than the price to the World Health Organization," he said, referring to the anti-hypertensive brand produced by Pfizer. "The fair price of the product is about 2.5 times of the price it sold to WHO."
The amlodipine product is called Norvasc in North America.
The judge said the commission ordered Pfizer Indonesia to lower the selling price of Norvask by 65% and ordered Dexa Medica to lower the price of Tensivask by 60%.
Pfizer Indonesia and Dexa Medica refute the KPPU's findings.
"PT Pfizer Indonesia does not hold a dominant position in anti-hypertensive medicines, there are hundreds of such products in the market," a statement read, while Dexa Medica's lawyer, Rikrik Rizkiyana, said its drug's retail price and the price for the WHO "is not an apple-to-apple comparison."
Both companies said they will appeal the decision.
The KPPU has also asked Pfizer Indonesia and Dexa Medica to slash their promotion costs by 60% and limit sponsorship for doctors.