Pharma companies raided over alleged generic blocking
pharmafile | January 18, 2008 | News story | Sales and Marketing |Â Â Â
Pharmaceutical companies across Europe have been raided by EU investigators who suspect illegal moves to block the launch of cheaper generic drugs.
GlaxoSmithKline, Pfizer, AstraZeneca and Sanofi-Aventis were all raided at dawn by European Commission investigators looking for evidence to back up its suspicion that generic launches are being deliberately delayed.
The Commission says the raids are not based on any specific information, but they will nevertheless conduct a comprehensive investigation into manufacturers of branded and generic medicines.
In particular, the inquiry will look at whether agreements between pharmaceutical companies, such as settlements in patent disputes, may infringe EU laws on restrictive business practices.
Another line of inquiry is whether companies may have created artificial barriers to entry, either through the misuse of patent rights, legal manoeuvres or other practices which might be ruled anti-competitive.
European Competition Commissioner Neelie Kroes, who gave the go-ahead for the raids, said: “Individuals and governments want a strong pharmaceuticals sector that delivers better products and value for money. But if innovative products are not being produced, and cheaper generic alternatives to existing products are in some cases being delayed, then we need to find out why and, if necessary, take action.”
EFPIA, the representative body for the European pharma industry issued a muted response to the raids, saying it hoped the inquiry would help the Commission “better understand the nature and process of innovation in the pharmaceutical sector”.
US competition regulators have been alerted to the raids and are also examining the issues.
Ms Kroes cited a 2005 ruling in which AstraZeneca was fined 60 million euros ($88 million) after the commission found the company had abused patent laws to delay the launch of a generic rival to its blockbuster ulcer drug Losec.
An interim report from the Commission is scheduled to be ready in the autumn, with the Commission expected to reach its final conclusions in the spring of 2009.
