top of page
Search

Legal Victory Related to Drug Price Regulation in Ecuador

 

Dear friends and clients,

We are pleased to share with you the legal stance of the Administrative Contentious Court regarding compliance with the norms and obligations of the Public Administration in cases of drug price regulation.


Effective Legal Strategy

The legal strategy designed by Meythaler & Zambrano has enabled the Court to reaffirm the need for the National Council for Setting and Reviewing Prices of Drugs for Human Use and Consumption to strictly comply with the provisions of the Administrative Organic Code, as well as the rights of the administered.


Importance of the Legal Precedent

The resolution and conclusions of this case constitute an important precedent for future litigations concerning drug price setting and highlight the necessity of having specialized advice in this area.


Detailed Case Analysis

In the claim filed before the District Administrative Contentious Court, non-compliance with the provisions of the Administrative Organic Code was alleged in a drug price regulation procedure. This procedure violated previously acquired economic rights, resulting in a null administrative act.


Firm Position of the Court

The Court emphasized its capacity to review and declare the nullity of acts contrary to law on its own premises, highlighting that the Administration's action in violating rights and not complying with the norm was contrary to the sense of justice that should guide state institutions:

“The Council has the power to review on its own premises ex officio or at the request of a party whether the acts it produces are or are not involved in any of the nullity vices that cannot be validated as being null and void, or alternatively, to detect any infringement of the legal order that can be remedied...”
“The Court considers that the response contained in the official letter […], not only was issued by an incompetent authority and has wrong motivation […]. But, it is contrary to the ‘sense of justice’. The administration has taken advantage of its passivity by using a title of privilege, by not providing a proper response to a request from the administered.”

Finally, it concluded that the act issued by the public authority is contrary to the law:

“Therefore, the official letter […] through which the Technical Secretary of Price Fixing [sic], is involved in the cause of nullity established in numeral 1 of article 105 of the COA, that is, it has been issued against the Law.”


Conclusion: Legal Strategy

The legal strategy included a comprehensive analysis of the legal nature of an administrative procedure, the rights involved, and the attributions and responsibilities of the public institution. In addition, a detailed analysis of cases and international experience regarding prior regulation was incorporated into the process.


We are at your disposal to clarify any doubts: info@lmzabogados.com


bottom of page