CPC Investigates Drug Shortages and Parallel Exports in the Pharmaceutical Sector

The Commission for Protection of Competition (CPC) is conducting a sectoral analysis of the wholesale and retail drug markets, focusing on medication shortages, parallel exports, and the risks of competition distortion. This was reported by zdrave.net. The results of the investigation will be presented publicly in the coming days, announced CPC Chairman Rosen Karadimov during the presentation of the commission’s annual report for the period of May 2025 – May 2026.

According to him, the analysis covers the entire chain — from production and import to wholesale and retail trade, including the distribution of limited quantities of medicines, vertical integration between traders and pharmacy structures, and the risk of parallel exports at the expense of Bulgarian patients.

According to Karadimov, vertical integration can bring benefits such as better logistics and supply security; however, with insufficient transparency and limited quantities, there is a risk of prioritizing proprietary pharmacy outlets, delaying deliveries to independent pharmacies, and creating conditions for artificial deficits.

As an example of regulatory intervention, he pointed to the CPC’s decision to conditionally authorize the acquisition of control over “Medea” pharmacies by “Phoenix Bulgaria.” According to the commission, the imposed measures for the transparent distribution of medicinal products and the mitigation of risks related to access to sensitive information via pharmacy software are aimed at protecting competition and patients.

In parallel, the CPC is also investigating whether the regulatory framework for the supply of medicines that are not authorized for use in Bulgaria but are paid for with public funds ensures sufficiently effective competition.

The proceedings began following a report from a Member of Parliament and public information regarding significant price differences for the same medicinal products across different hospitals.

According to preliminary data from the commission, the lack of centralized framework agreements and the practice of hospitals awarding supply contracts for short periods and limited quantities lead to higher prices and more unfavorable conditions for public healthcare facilities.

The CPC also reported that the fight against bid-rigging remains among the commission’s top priorities. Currently, eight proceedings are underway regarding suspected manipulation of public tenders, with charges already brought against three companies in cases related to the supply of hospital food.