GlaxoSmithKline Fined GBP37.61 Million for Paying off Competitors
February 12 2016 - 3:02AM
Dow Jones News
By Ian Walker
LONDON--The U.K. Competition Authority said Friday it has fined
GlaxoSmithKline PLC (GSK.LN) 37.61 million pounds ($53.77 million)
for trying to delay the potential entry of generic competitors into
the U.K. market for anti-depressant medicine paroxetine.
Between 2001 and 2004 GlaxoSmithkline agreed to make payments
and provide other benefits, together worth more than GBP50 million,
to suppliers of generic versions of paroxetine.
"The CMA has found that these payments and other value transfers
were aimed at delaying the potential entry of generic competitors
into the U.K. market for paroxetine," the U.K. regulator said.
In 2001, a number of pharmaceutical companies, including
Generics (UK) Ltd. and Alpharma Ltd., were taking steps to enter
the U.K. market for paroxetine with a generic version. Glaxo
challenged these pharmaceutical companies, alleging that their
generic products would infringe its patents, and started litigation
proceedings against Generics and Alpharma.
However, before that litigation went to trial, the two companies
entered into agreements with Glaxo, which included terms
prohibiting their independent entry into the U.K. paroxetine
market, the CMA said.
Glaxo's agreements with each of Generics and Alpharma infringed
the competition law prohibition on anti-competitive agreements, the
CMA added.
Generics has been fined GBP5.84 million and Alpharma fined
GBP1.54 million.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
February 12, 2016 02:47 ET (07:47 GMT)
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