Competition Bureau reaches agreement with Isologic to protect competition in healthcare
March 24, 2023 – GATINEAU, QC – Competition Bureau
The Competition Bureau announced today that it has entered into a consent agreement with Isologic Innovative Radiopharmaceuticals Inc. (Isologic) to address competition concerns with its contracting practices in the radiopharmaceutical industry.
A Bureau investigation found that Isologic’s contractual practices with certain customers contravened the abuse of dominance provisions of the Competition Act. These practices affected certain customers purchasing radiopharmaceuticals used for single photon emission computed tomography (SPECT) scans. Affected customers were required to purchase some products exclusively from Isologic.
Isologic cooperated with the Bureau’s investigation and agreed to resolve the Bureau’s competition concerns by entering into a consent agreement.
Under the terms of the agreement, Isologic will cease using certain terms in its contracts with some customers, including legal exclusivity clauses. Isologic will also include a term in any multi-year contracts with these customers permitting them to terminate the contract prior to its expiration.
The complete consent agreement is available on the website of the Competition Tribunal.
Promoting and protecting competition and innovation in the Canadian health care sector is a key priority for the Competition Bureau. The Bureau encourages anyone who suspects an individual or a business of engaging in anti-competitive activities to file a complaint.
Radiopharmaceuticals are radioactive compounds used for diagnostic or therapeutic purposes.
SPECT scans are a type of imaging scan in which certain types of radiopharmaceuticals are used to make detailed images of areas inside the body.
Abuse of dominance occurs when a dominant business (or group of businesses) engages in activity that stops or substantially reduces competition in a market.
Consent agreements generally contain remedial measures that the Commissioner has determined are appropriate to address the impact of conduct that contravenes the abuse of dominance or other provisions of the Competition Act.
A consent agreement has the force and effect of a court order once it is registered with the Competition Tribunal.
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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