EMG Summary of GlaxoSmithKline
Canada’s Never-Ending Transfer Pricing Dispute

Between 1990 and 1993, GlaxoSmithKline Inc. (“Glaxo Canada”) purchased ranitidine, the active pharmaceutical ingredient in the brand name anti-ulcer blockbuster drug Zantac, from Adechsa S.A., a related non-resident company, for between $1,512 and $1,651 per kilogram. During the same period, two Canadian generic pharmaceutical companies, Apotex Inc. (“Apotex”) and Novopharm Ltd. (“Novopharm”) purchased ranitidine from other sources for use in their generic anti-ulcer drugs for between $194 and $304 per kilogram from arm’s length suppliers.

Read more