Glaxo, Sanofi slammed with regulatory fines in India over vaccines
- Each year, the Indian government solicits bids as part of its purchasing program to supply Haj pilgrims with necessary vaccinations.
- India's Competition Commission has fined GSK $9.4 million for collusive bidding on a government vaccines contract. Sanofi was fined roughly $500,000.Both companies deny allegations.
- Bio-Med, an Indian vaccines firm, complained to the Competition Commission because of what it considered unfair bidding and contract procurement practices for the polysaccharide Quadrivalent Meningococcal Meningitis vaccine (QMMV).
Although GSK is denying allegations of collusive bidding, the Competition Commission cited evidence suggesting that the allegations were true, because of the fact that there were only three suppliers of the QMMVs. Additional evidence involved the fact that in November 2014, India's Director General submitted a report, which included evidence of government collusion with the bidding proces.
This is really the last thing that GSK needs after navigating through a $489 million bribery fine in China last year, and attempting to reinvigorate its vaccines franchise by acquiring Novartis's vaccines as part of a swap. Regardless, GSK is still focused on its goal to achieve 5% to 9% compounded growth between 2016 and 2020.
- Fierce Vaccines India competition body cracks down on GSK, Sanofi