DLA Piper Dinu cancels EUR 7 million claw-back tax of producer in court

Law firm DLA Piper Dinu obtained a favorable ruling at the Bucharest Court of Appeal that cancelled a claw-back tax of over 30 million (EUR 7 million) that had to be paid by an international pharma producer.

Radu Balas (in picture), coordinator of the litigation practice at DLA Piper Dinu, said this decision may play a significant role in the pharma market if more courts make similar rulings, given that numerous producers are seeking a similar decision regarding the claw-back.

“The court said those who need to pay are only entitities that sell medicines directly to pharmacies and hospitals, not other entities that are involved in the production/distribution chain, from the marketing authorization holder to the final consumer,” said Balas.

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The international producer in question doesn’t have to pay the claw-back because it sold medicines to wholesale distributors.

The Court of Appeal said the claw-back tax can only apply for sums reimbursed by the National Insurance House CNAS. It added this tax has to be paid by the wholesale distributor that sells subsidized medicines for pharmacies and hospitals.

The DLA Piper Dinu team that worked on this case included Livia Constantinescu and Alina Lacatus from the Life Sciences practice, as well as Daniela Bistrae and Radu Balas in Litigation.

Ovidiu Posirca