Lundbeck Fined $125M Over Pay-To-Delay Deal In Europe

In the latest move by regulators to clamp down on so-called pay-to-delay deals, the European Commission has fined Lundbeck and four other drugmakers for reaching agreements to block entry of generic versions of the best-selling Celexa antidepressant. Lundbeck was fined $125.6 million, while the others - including Ranbaxy Laboratories - paid a total of nearly $70 million. After the basic patent that Lundbeck held on the molecule had expired, the drugmaker only retained a number of related process patents that provided limited protection. And so, Lundbeck struck deals in 2002 with generic rivals to refrain from selling copycat versions in return for "substantial payments and other inducements amounting to tens of million of euros," according to the EC. The regulator cited internal documents that refer to a "club" being formed and "a pile of $$$" to be shared, and charged that Lundbeck paid "significant lump sums," purchased stock from the generic drugmakers for the "sole purpose of destroying it," and offered guaranteed profits in a distribution agreement. "It is unacceptable that a company pays off its competitors to stay out of its market and delay the entry of cheaper medicines," says EC vp Joaquin Almunia in a statement. "Agreements of this type directly harm patients and national health systems, which are already under tight budgetary constraints. The commission will not tolerate such anti-competitive practices." The move comes amid increased scrutiny of these deals on bot...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs