Client updates /  Excessive Pricing

The Israeli Competition Director General fined MBI and company officers after they spiked the price of a life-saving drug called Leadiant by hundreds of percentage points.

Israeli district courts have already recognized the possibility of suing a monopoly for charging an unfair excessive price, but the Israeli Supreme Court’s recognition of this cause of action ends defendants’ potential arguments for opposing this very possibility.

For the first time, the Israel Competition Authority has opened enforcement proceedings against a monopolist for abuse of its dominant position by charging an unfairly high price. Subject to a hearing, the authority intends to impose a pecuniary sanction of ILS 8 million on MBI Pharma Ltd. and personal sanctions on two officers of the company (of about ILS 600,000 each). The company faces accusations of charging an excessive price for Leadiant, a life-saving drug for CTX patients (an incurable genetic disease), which is marketed by MBI Pharma in Israel.

In an attempt to reduce insurance costs for License Holders, the Israel Securities Authority (ISA) has recently implemented several changes.