Roche and Novartis fined for cartelizing sales of eye drugs Avastin and Lucentis in Italy

Swiss pharma majors Roche (ROG: SIX) and Novartis (NOVN: VX) colluded to exclude the cheaper cancer drug Avastin (bevacizumab), used in the treatment of the most common eyesight condition in the elderly as well as other serious sight problems, and channel demand towards the much more expensive drug Lucentis (ranibizumab), through an artificial distinction between the two products, says Italy’s anti-trust authority, the Autorita Garante della Concorrenza e del Mercato (AGCM) in an announcement made yesterday.

The anticompetitive agreement caused the Italian National Health Service to sustain additional expenses estimated at over 45 million euros ($62 million) in 2012, while increased future costs might exceed 600 million euros per year. Novartis and Roche were imposed fines totaling 92 million euros and 90.5 million euros, respectively.

On 27 February 2014, the AGCM issued a decision finding that Roche and Novartis infringed article 101 TFEU by participating in an anticompetitive agreement in the market for ophthalmic drugs used to treat some serious vascular eyesight conditions, including age-related macular degeneration (AMD). AMD is the main cause of blindness in developed countries: in Italy alone a million people may be at risk of developing AMD.