SILENCE AS MONOPOLY TIGHTENS IN MEDICINE BUSINESS

AGOSTINI’S Ltd. has just bought its fourth pharmaceutical company, deepening its monopoly of that important sector.

And there has not been a murmur from the Fair Trade Commission, whose job is to manage industry commission and to ensure that consumers are not negatively impacted.

Nor have there been any publicly expressed concerns from stakeholders about possible price-fixing in the medicine business.

The silence extends to the media, which reported the latest acquisition without questioning possible implications for retail price increases.

Agostini’s, through its subsidiary Caribbean Distribution Partners Ltd., acquired 80 per cent of the shares of Chinook Trading Canada Ltd., a Montreal-based firm that operates largely in the Caricom region.

Last December, Agostini’s bought Collins Ltd. and Carlisle Laboratories Ltd., which are also in the pharmaceutical and healthcare sector.

In 2021, the conglomerate, through its subsidiary Smith Robertson, purchased Oscar Francois and its manufacturing associate, Intersol.

At the time of the 2021 deal, the Trinidad and Tobago Pharmacy Board voiced concerns of a monopoly in the sector, leading to increases in retail prices.

The Fair Trade Commission said then that the merger would not be detrimental to consumers.

The commission said it was monitoring the industry “in order to detect and treat with anti-competitive activities, such as unfair selling prices, predatory pricing, discriminatory behaviour and abusive increase of prices of essential pharmaceutical products.”

In its financial report for the nine months ending June 30, 2022, Agostini’s reported a 47.5 increased profit, compared to the previous similar period.

The conglomerate also operates in other sectors.

The pharmaceutical and healthcare sector generated $1 billion in revenues, which was 17.2 per cent higher than the previous comparative period.

The organisation said its bottom line was boosted by the acquisition of companies in the sector.

In its most recent annual report, Agostini’s said the pharmaceutical segment produced a 10 per cent increase in sales and a 22 per cent hike in profitability.