PHARMACEUTICAL MONOPOLY STRENGTHENS ITS HOLD

SUPERPHARM, part of Agostini’s pharmaceutical monopoly, is taking over Massy’s drug stores, giving further pricing power to a single industry operator.

Massy, Trinidad and Tobago’s largest grocery chain with 23 stores has confirmed the sale of its “in-store pharmacy assets” to Superpharm.

The deal “will draw on the operational strengths of a proven leader in pharmacy operations,” Massy said.

There are nine Superpharm stores in high-traffic commercial areas in T&T.

The Superpharm pharmacies are part of Agostini’s Group, which has an importation monopoly in the essential sector.

Superpharm’s purchase of Massy’s pharmacy business will boost its over-the-counter and prescription sales to customers, many of whom are elderly or single parents.

The business acquisition means that in addition to the importation monopoly, Agostini’s will run 32 strategically located retail drug stores, each with significant customer base.

It is not known whether the jobs of Massy’s pharmacists and other employees will be affected.

Agostini’s became an industry monopolist in 2021 through the purchase of two longstanding companies in local pharmaceutical retail and distribution.

While the authorities have ignored this dramatic evolution in the sector, major countries are seeking to control Big Pharma, by limiting their business and pricing power.

International research has found that in countries with pharmaceutical monopolies, retail prices are often significantly higher than in other nations.

A new international report by a group called Global Justice said that Big Pharma “can charge whatever they want and get away with it.”

The firms, which include drug manufacturers, are “routinely able to return far more profit to their rich shareholders than they plough back into research and development.”

In the United States and certain other countries, Big Pharma has been accused of trading primarily in medicines that permit them to enjoy “sky-high profits.”

A study by GGU Law Digital Commons said certain international firms in the sector were involved in “corrupt” pricing.

Agostini’s is a highly successful publicly traded company whose stocks have enjoyed continuously increased value.

In its 2023 financial report, Agostini’s said there was a 14.3 per cent boost in sales, which were valued at $4.7 billion.

Net profit in 2023 was $393.1 million, compared to $283.8 m for the previous year.

Chairman Christian Mouttet attributed the strong financial performance to “strategic acquisitions.”

Mouttet said the group continued to grow and strengthen its positioning.

Agostini’s has brought several regional firms, including Health Brands Ltd., a Jamaican pharmaceutical distribution company, and Aventa NV, which operates in the Dutch Caribbean.

Such acquisitions, Mouttet said, “have expanded our regional footprint and brand portfolio.” 

In an effort to challenge Big Pharma in the US, billionaire Mark Cuban has set up a company called Cost Plus Drugs, which makes medicine and places a marginal price mark up.

An executive official of the company said: “No one should not get the lifesaving ICU medications or have to postpone their surgery because the common, cheap medications are not available.”

Cuban has challenged the CVS pharmacy chain – the largest drug middleman in the US – to be transparent with prices.