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Pharmaceuticals Industry
The pharmaceuticals industry is subject to detailed legal regula-
tions due to its unique nature. The most eye catching feature of the
industry from the frame of competition concerns is the developed dis-
tribution network. The distribution network in the mentioned industry
consists of pharmaceutical warehouses, which distribute the medicines
it has purchased from pharmaceutical companies in the upper market
to the sub-markets and the pharmacies in their sub-markets. Pursuant
to the determinations of the Authority, the competition concerns with-
in the pharmaceuticals distribution network concentrates on the retail
level. Due to structural and behavioral competition concerns in the
retail distribution networks, a price competition between pharmacies
which could be reflected to the consumers cannot be established and
thereby the consumer choices and their access to medicine are being
limited.
Authority submitted the following suggestions in order for over-
coming the competition concerns:
• Considering the importance of the establishment of the compe-
tition between pharmacies
• Re- regulating the legislation, in which the practices preventing
the patients from freely choosing the pharmacies they take ser-
vices from and restrict competition, are depending on, in an
explicit way, so that they would not cause any base for compe-
tition restrictions.
• Development of system providing the pharmacies to increase
the level of competition within the current pay back system and
thereby encourage them to offer to the consumers the equivalent
medicine that are cheaper and reflect the advantages provided
from the choice of medicine to the end consumers.
• Evaluation of the suggestions for application of criteria for
opening new pharmacies depending on geographical and popu-
lation factors, which would eventually create an entry barrier to
the market in the retail level, in a wide platform by applying an
impact analysis.
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NEWSLETTER 2012