Noticias

A recent study by the Chilean Competition Agency (Fiscalía Nacional Económica, “FNE”) revealed that its intervention in the market for the anti-inflammatory drug Celecoxib—primarily indicated for the treatment of inflammation and chronic pain related to osteoarthritis and rheumatoid arthritis in adults, as well as for the management of acute pain—generated savings exceeding US$346 million for consumers and the government between 2017 and 2024.

According to the analysis prepared by the FNE’s Antitrust Division, titled “Impact Assessment: FNE Intervention in the Celecoxib Market”, the authority’s enforcement activity led to price reductions, an expansion of supply, and improved efficiency in public spending in a particularly sensitive sector such as the pharmaceutical market.

National Economic Prosecutor Jorge Grunberg emphasized that these results demonstrate the tangible benefits that timely action by the FNE brings to the country. “This analysis clearly shows how our work can improve people’s lives and optimize public spending in markets as sensitive as the pharmaceutical sector”, he stated.

He added that the agreement reached by the authority “corrected a monopolistic distortion and consolidated a competitive dynamic in the sale of Celecoxib-based medicines, the results of which are clearly reflected in the impact assessment carried out by the FNE”.

The Celecoxib Case

In 2015, the FNE initiated an investigation against G.D. Searle LLC, a subsidiary of Pfizer Inc., for implementing a strategy aimed at artificially extending the exclusivity of the drug CELEBRA® through a secondary patent—a practice known as evergreening. This conduct sought to prevent the entry of generic bioequivalent medicines until 2029, delaying the availability of more affordable alternatives for patients.

In 2016, the FNE filed a complaint before the Competition Tribunal (Tribunal de Defensa de la Libre Competencia), which concluded with a settlement agreement requiring the company to: grant royalty-free licenses to competitors; refrain from promoting secondary brands of Celecoxib for two years; abstain from exercising administrative or judicial actions related to the secondary patent and withdraw existing legal actions; terminate onerous licensing agreements with potential competitors; and inform the general public, drug distributors, and pharmacies of the existence of the settlement agreement and its most relevant aspects.

The FNE’s action resulted in the removal of artificial barriers that hindered competition in the Celecoxib market, generating effects reflected in three dimensions:

• Price reductions: Between 2017 and 2024, the average price of Celecoxib fell by 56% in the retail pharmacy channel and by 97% in the institutional channel, facilitating patient access and generating significant savings for the public health system.
• Significant savings: Between 2017 and 2024, savings for consumers and the government totaled US$346.6 million, equivalent to US$43.3 million per year. If projected through 2029—the year in which the secondary patent granting exclusivity to G.D. Searle LLC was set to expire—benefits would have reached US$563.2 million.
• Increased competition: The market went from having a single supplier in 2014 to 12 laboratories in 2024, significantly reducing concentration and expanding available options.

Despite these advances, the impact assessment warned that significant information asymmetries persist, making it difficult for consumers to identify and choose the most affordable generic bioequivalent medicine.

In the case analyzed, the FNE concluded that the existence of a public policy recommended by the FNE in its Market Study on Medicines of 2020 aimed at addressing this problem could have generated additional savings of approximately US$98.5 million during the 2017–2024 period.

The FNE will continue to actively monitor the pharmaceutical market, given its relevance to Chilean household budgets and the public health system.

See Impact Assessment