Teva denies wrongdoing in Cephalon pay-to-delay deal hearing

pharmafile | March 14, 2018 | News story | Research and Development, Sales and Marketing Cephalon, Pay to delay, Provogil, Teva, pay-to-delay, pharma 

Teva has denied allegations from the European Commission (EC) that it engaged in illegal anti-competitive pay-to-delay tactics to maintain its market share in the sleep disorder drug space at a hearing this week, it has emerged.

The seemingly perpetually embattled Israeli generics firm refused to acknowledge that it had engaged in an agreement with rival firm with Cephalon to delay the latter’s cheaper generic version of the drug Provogil (modafinil). The EC and competition watchdogs maintain that the move resulted in the price of the drug increasing by as much as 10%.

Teva was originally charged over the allegations in July last year. The deal in question was reportedly struck as a means to resolve a lawsuit over infringement of Cephalon’s patents. Ultimately, Teva ended up acquiring Cephalon in 2011.

 “Teva has responded to the statement of objections robustly, and has attended the oral hearing today,” the company said in a statement. “We do not believe that Cephalon and Teva entered into any anti-competitive behaviour,”

While a final decision by the EC is still yet to be reached, it is within the organisation’s power to fine offending companies for up to 10% of their global turnover for engaging in such practices, which could hit Teva particularly hard given its recent financial struggles.

Matt Fellows

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