UK accuses GSK of delaying generics

Generics and biosimilars Initiative

Building trust in cost-effective treatments

Sign up
eng / esp

UK accuses GSK of delaying generics

Home/Pharma News | Posted 29/04/2013 0 Post your comment

The UK’s competition watchdog is accusing GlaxoSmithKline (GSK) of delaying the entry of generics to its antidepressant drug Seroxat (paroxetine) by paying rival companies to stay off the market.

The UK’s Office of Fair Trading (OFT) issued a statement on 19 April 2013 stating that agreements made between GSK and generic drug companies Alpharma (part of US-based generics group Actavis), Generics UK (part of Mylan) and Norton Healthcare (part of Israel-based Teva Pharmaceutical Industries) ‘acted to delay effective competition in the UK supply of paroxetine’.

The accusations come more than a decade after the agreements took place and are the first such accusation by the OFT relating to what are known as ‘pay-for-delay’ arrangements among pharmaceuticals companies.

The OFT is saying that GSK abused its position as the UK’s largest pharmaceutical company and denied the NHS significant cost savings (estimated at around GBP 100 million) on paroxetine between 2001 and 2004, the period in question.

GSK has until August 2013 to respond formally to the OFT if it wants to submit evidence that challenges the accusation of market abuse. If GSK is found to have infringed competition law, it could be fined up to 10% of its worldwide sales. GSK posted global sales of GBP 26.4 billion in 2012.

Related articles

Problematic pharma patent settlements decrease in the EU

How originator companies delay generic medicines

European Commission investigates Johnson & Johnson and Novartis over delaying generics

Permission granted to reproduce for personal and educational use only. All other reproduction, copy or reprinting of all or part of any ‘Content’ found on this website is strictly prohibited without the prior consent of the publisher. Contact the publisher to obtain permission before redistributing.

Source: OFT, The Wall Street Journal