CCP grants exemptions to boost innovation access in pharmaceutical sector

The Competition Commission of Pakistan (CCP) has granted exemptions to boost innovation access in Pharmaceutical sector for maintaining market fairness.

In line with its mandate to promote fair competition and protect consumer welfare, the CCP has granted six exemptions to undertakings in the pharmaceutical sector for the fiscal year 2024–25, under Section 5 of the Competition Act, 2010.

These exemptions relate to specific restrictive clauses in commercial agreements—such as territorial exclusivity and non-compete provisions—that would ordinarily be considered anti-competitive under Section 4 (Prohibited Agreements) of the Act.

However, after conducting rigorous due diligence, including a detailed assessment of market structures, sector-specific regulations, and the commercial terms of the agreements, the CCP determined that the arrangements in question contribute to production efficiency, technological advancement, and enhanced consumer access to critical pharmaceutical products.

The Commission noted that these exemptions are expected to improve service delivery, increase the availability of medicines in underserved regions, and lead to better public health outcomes. Consumers stand to benefit from access to advanced pharmaceutical technologies, more reliable product information, and higher standards of service.

Each exemption was granted for a specific duration and is subject to conditions that ensure the pro-competitive benefits clearly outweigh any potential adverse effects on competition. Importantly, the undertakings are required to avoid any form of price-fixing or collusive conduct, and pricing arrangements remain outside the scope of these exemptions.

The pharmaceutical sector remains a priority area for the CCP’s exemption regime, with the Commission maintaining close coordination with relevant health regulators to ensure that such decisions serve the broader public interest.