Landmark Judicial Victory Against Arbitrary Drug Price Controls in Ecuador

In an environment where drug price regulation can severely impact pharmaceutical companies, Meythaler & Zambrano Abogados has secured a significant judicial victory for a client in the pharmaceutical sector, setting an important precedent against arbitrary State decisions.

Background: A 50% Price Cut Imposed by the Price Council

Our client, a leading pharmaceutical company, was affected by a resolution issued by the National Council for Drug Price Regulation, which imposed a price ceiling on one of its products. This measure represented a nearly 50% price reduction, directly affecting its operations and profitability.

However, the decision lacked transparency and legal validity:

1. Lack of notification: The technical reports that allegedly supported the measure were never disclosed or communicated to our client.

2. Violation of fundamental rights: The client’s rights to due process and defense were breached, preventing any opportunity to challenge or rebut the decision.

The Legal Challenge: Due Process and Transparency at the Center

This case required a precise and highly specialized approach from our team at Meythaler & Zambrano, who combined expertise in:

• Pharmaceutical and pricing regulation, a technically complex area;

• Administrative litigation, where State actions are contested;

• Procedural strategy, to demonstrate the violation of rights and the illegality of the measure.

  
  

The Court’s Decision: Annulment of the Administrative Act

The Administrative Litigation Court of Guayaquil ruled in our client’s favor, declaring the administrative act null.

The judges confirmed that the failure to notify the technical reports constituted a clear violation of due process and the right to a defense.

A Key Precedent for Drug Price Regulation

This is the second consecutive victory for Meythaler & Zambrano Abogados in the area of drug price regulation. This ruling is a landmark decision because it:

• Limits the State’s ability to impose arbitrary pricing measures;

• Protects pharmaceutical companies’ rights to a fair and transparent process;

• Reinforces the need for transparency and due process in administrative decision-making.

Our Added Value: Technical Mastery and Strategic Litigation

At Meythaler & Zambrano, we combine deep technical and legal knowledge with a solid litigation strategy. Our commitment is to ensure that our clients’ rights are respected, even in the face of complex and challenging State decisions.

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