SFP disqualifies pharmaceutical companies for monopolistic practices

The Ministry of Public Administration (SFP) communicated to dependencies and entities of the Federal Public Administration, to productive companies of the State, as well as to federal entities, municipalities, and mayors, to refrain from making contracts and proposals with pharmaceutical companies due to monopolistic practices.

Through the Official Gazette of the Federation (DOF), it was reported that Valtrum, S.A. DE C.V.; Impromed, S.A. DE C.V.; Centrum Promotora Internacional, S.A. DE C.V., Med Prime, S.A. DE C.V and Falcón Instruments and Equipment, S.A. DE C.V, had as an administrative sanction a disqualification for seven years, in which they will not be able to participate directly or indirectly in contracting procedures, nor enter into contracts with any contracting public institution; this through section VII of article 3 of the Federal Anticorruption Law in Public Procurement.

These companies are part of the investigation initiated, in 2016, by the Federal Commission for Economic Competition (Cofece) due to millionaire contracts obtained through tenders from the National Health System.

The investigation showed that the cartel agreed to share territories and set prices in a tender to obtain 37 contracts and 469 million clinical tests to get economic benefits at the expense of the market.

In August 2020, Cofece determined that 11 companies and 14 people had distributed contracts from the Mexican Social Security Institute (IMSS) and ISSSTE, in 2008, 2010, 2011, and 2015.

Because of this, it imposed fines of 626,457 pesos on said entities and individuals for contributing to an “absolute monopolistic practice, sanctioned by the Federal Law of Economic Competition, as they are arrangements and exchanges of information between competing economic agents, with the purpose of and effect of coordinating bids in public tenders.”

But, in said sanction, Cofece indicated that it did not have the legal power to limit or disable the participation of any company in any public contracting process but that it would notify the matter to the SFP of the appropriate legal effects.

After two years of this resolution, the SFP determined the disqualification of the four companies.