European Commission Fines Teva, Cephalon EUR60.5 Million for Antitrust Violation
By Cecilia Butini
The European Commission said Thursday that it has fined
pharmaceutical companies Teva Pharmaceutical Industries Ltd. and
its subsidiary Cephalon Inc. a total of 60.5 million euros ($72.1
million)for violating European antitrust rules for keeping a
generic version of a drug out of the market.
The commission said the two companies agreed to delay the market
entry of a cheaper, generic version of Cephalon's sleep-disorder
drug modafinil for several years after Cephalon's main patents had
expired. The agreement was put in place before Cephalon became a
Teva subsidiary, according to the commission.
"It is illegal if pharmaceutical companies agree to buy-off
competition and keep cheaper medicines out of the market,"
Executive Vice-President Margarethe Vestager, who is in charge of
competition policy, said.
Ms. Vestager added that the two companies' behavior "harmed
patients and national health systems, depriving them of more
According to the commission, Cephalon induced Teva not to market
a cheaper version of its drug by offering a package of advantageous
commercial side deals and cash payments. This eliminated Teva as a
competitor and allowed Cephalon to keep charging higher prices for
modafinil, even after the patent had expired. This lasted from 2005
to 2011--when Teva acquired Cephalon--and took place in most EU
member states, the commission said.
The fine imposed by the commission is EUR30 million for Teva and
EUR30.5 million for Cephalon, it said.
Write to Cecilia Butini at email@example.com
(END) Dow Jones Newswires
November 26, 2020 07:37 ET (12:37 GMT)
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