Milan

Dinner in honor of AGCM Chairman Giovanni Pitruzzella

Dinner organised by Concurrences Review in honor of Giovanni Pitruzzella, President of the Italian Competition Authority (AGCM), in partnership with White & Case and Compass Lexecon.

Giovanni Pitruzzella

Giovanni Pitruzzella started the debate emphasizing the complexity and the wide range of factors involved in the competition enforcement in the pharmaceutical sector. Such complexity and other critical issues are the result of the peculiarities of such industry. In particular, Chairman Pitruzzella identified three main differentiation aspects.

First, the pharmaceutical sector is unusual since prices, in this sector, are most often the result of a regulated decision-making process (involving nevertheless negotiations between stakeholders). Because of the three-edged demand structure, especially for prescription medicines, (doctors’) choices on what medicine to use are usually not very price sensitive, although various mechanisms to control prescription medicine budgets do exist.

Secondly, on the demand side, the pharmaceutical sector is unusual because, for prescription medicines, the ultimate consumer (the patient) is not the decision maker. Decisions are generally made by the prescribing doctors (in certain Member States, the pharmacist also plays a role). Yet, neither the patient, nor the prescriber or the dispenser directly bear most of the costs, as these are generally covered and/or reimbursed largely, or even wholly, by national health (insurance) schemes.

Photos © Carlo Gianferro

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Speakers