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UPDATE 1-GSK appeal against fine over 'pay-for-delay' drug deals faces EU rebuke

Wed, 22nd Jan 2020 09:51

(adds details, background)

BRUSSELS, Jan 22 (Reuters) - British drugmaker
GlaxoSmithKline may have harmed competition with
payments it made to generic drugmakers to delay the launch of
cheap copies of an antidepressant, according to an adviser to
the European Court of Justice.
The legal opinion, which is not binding on the court but
carries a significant weight, effectively upholds a penalty of
37.6 million pounds ($49 million) imposed by Britain's
competition watchdog in 2016.

The Competition and Markets Authority (CMA) said that
between 2001 and 2004, GSK paid generic drug companies over 50
million pounds with the intention of delaying the release of
cheap generic versions of its former blockbuster Seroxat after
its patent expired in 1999.

These so-called pay-for-delay deals "may be regarded as a
restriction of competition," EU's court advocate-general Juliane
Kokott said on Wednesday.

GSK had said the deals settled disputes with generic
drugmakers and had challenged the CMA fine before a British
appeal tribunal, which sought guidance with the EU court about
whether these settlements might breach competition rules.

"An agreement in settlement of a patent dispute may
constitute a restriction of competition," the court's legal
adviser said.

"Entering into such an agreement may be an abuse of a
dominant position," she added in her opinion.

In most cases the court confirms in its definitive rulings
the opinions issued by its advisers.
(Reporting by Francesco Guarascio @fraguarascio; editing by
Philip Blenkinsop and Barbara Lewis)

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