OREANDA-NEWS. August 08, 2011. The Federal Antimonopoly Service (FAS Russia) and “Novo Nordisk” Ltd., which represents a group of companies of Novo Nordisk A/S, reached an amicable settlement, which provides for more clear and transparent criteria for Russian distributors to access the products of “Novo Nordisk” Ltd., reported the press-centre of FAS Russia.

In 2010 FAS investigated the case and found that “Novo Nordisk” Ltd. violated the Law “On Protection of Competition” (Clauses 5 and 8 Part 1 Article 10), imposed an administrative fine upon the company and issued a determination to stop the violations.

In course of judicial proceedings, FAS Russia and “Novo Nordisk” Ltd. reached an amicable settlement, under which “Novo Nordisk” Ltd.

admitted violating the antimonopoly law;

fully executed the determination issued by FAS Russia: approved a new policy regarding commercial partners and a standard supply contract that contains unified requirements, clear criteria and procedures for the work with distributors. These documents are aimed at observing the law of the Russian Federation on protection of competition and do not contravene American and British anti-corruption laws;

made these documents publicly available on the official company web-site www.novonordisk.ru so any interested persons can be aware of them;

the company has a right to check whether potential and actual counteragents observe Russian, foreing and international anti-corruption laws subject to compliance with the antimonopoly law of the Russian Federation.

Due to voluntary elimination of the antimonopoly violation, the Court reduced the administrative fine to 53.5 mullion Rubles – a minimum fine under Article 14.31 of the Code on Administrative Violations.

The new policy of “Novo Nordisk” Ltd. regarding its commercial partners now has clear criteria and deadlines for assessment of potential and actual counteragents (“Novo Nordisk” Ltd. has the right to assess legal capacity, financial solvency and business reputation of its counteragents), clear decision-making procedures with regard to a potential counteragent distributing the products of the “Novo Nordisk” group (such decisions shall be made by the Assessment Committee of “Novo Nordisk” Ltd. within no more than three months) and the main conditions for supplying the products of the “Novo Nordisk” group (delivery location, price, payment conditions, the premium system, other substantive provisions).

The standard supply contract provides for unified prices and economically justified payment conditions and minimum consignments, as well as provisions on commercial partners observing the principles of business ethics pursued by “Novo Nordisk” companies. Requirements that can lead to discrimination of potential and actual trading partners are now excluded from the standard supply contract.

“Determining clear criteria and rules for entry of distributors to the markets will improve investment climate in Russia”, said Deputy Head of the FAS Department for Control over Social Sphere and Commerce, Mikhail Fedorenko.

The amicable settlement with “Novo Nordisk” Ltd. encourages development of competition in the pharmaceutical field in Russia.