The country’s antitrust authority has fined Bristol-Myers Squibb $3.2 million for restricting price competition among hospitals in northern Italy seeking to purchase colostomy bags, according to Thomson Financial. In addition, the authority fined three other companies - Coloplast, Hollister and B Braun Milano - for similar anti-competitive behavior.

“The four companies, that cover practically all the national demand, have not presented offers - even though they were prequalified - for a tender (offer) in August 2003″ for a Ferrera hospital, the government said. “Similarly, they have not presented offers in subsequent private negotiations in June 2004, to which they had been invited. The coordination conducted by the four companies has reduced the possible space for competition on price.”

In addition to specific purchases in Ferrera and Bologna provinces in north of Italy, the companies’ conduct had an impact on the national market, discouraging competitive tenders, the government charges. The conduct was “very serious” also taking into account of the type of product, which are vital for patients who have just had urinary kit or stomach operations.

According to the authority, the companies agreed not to participate in competitive tender offer two times in a row in Ferrera, forcing the hospital to buy from a list of suppliers. The four companies control 95 pct of the national market.

Large hat tip to PharmaGossip