Drug manufacturer AbbVie has stated that it will not force hospitals to purchase exclusively or to a large extent from AbbVie through discount schemes (or rebate programs).
AbbVie has made these assurances following an investigation conducted by the Netherlands Authority for Consumers and Markets (ACM). This ensures that, once a patent has expired, there will be more room for new competing drugs (biosimilars).
With these assurances with regard to AbbVie’s discount policy in tender processes, ACM has closed its investigation into anti-rheumatic drug Humira, and into possible abuse of a dominant position by AbbVie.
In 2019, ACM launched an investigation into the discounts that AbbVie in 2018 offered hospitals. This investigation was prompted by indications and reports that ACM received in its sector inquiry into anti-rheumatic drugs. Based on its investigation, ACM has come to the conclusion that AbbVie, as former patent owner, sought to make it harder for biosimilar manufacturers to enter the market.
In this case, the harm caused by this conduct has remained limited because, following a complaint filed by a competitor, AbbVie immediately dropped the conditions of its discounts. Continuation of this conduct would have been particularly harmful to drug affordability, and would have reduced the investment incentives for biosimilar manufacturers.
ACM has presented its findings to AbbVie. AbbVie does not endorse ACM’s findings, but has indicated that it finds fair competition to be important. That is why AbbVie has indicated that, in commercial contracts, it doesnot include any obligations to purchase exclusively from AbbVie or any clauses that may have a similar effect.
In addition, AbbVie has provided further clarifications, which are fleshed out below, in order to prevent competition rules from being violated.
1. AbbVie ensures that, in procurement procedures, commercial adalimumab offers do not contain any obligations to purchase exclusively from AbbVie nor any clauses that may have a similar effect. No clauses regarding the purchase of residual volumes will be included nor any other inappropriate conditions. AbbVie’s offers for hospitals and other buyers will be formulated clearly.
2. AbbVie will remove the reciprocal termination clause from its adalimumab agreement with hospitals, so that AbbVie is unable to terminate agreements without a breach of contract by the hospital.
3. AbbVie will tighten its compliance policy and compliance training, specifically focusing on proper and ethical conduct in procurement procedures, which includes not asking hospitals and other buyers about offers made by competitors and/or their prices. Compliance training ja ikwill be given at least once a year. This type of training will be geared towards the relevant commercial positions, and will include specific tests (including practical tests). ■