EU to fine Teva, Cephalon €60.5M for delay in drug launch

Thursday, 26. November 2020 15:45

European Commission decided to fine Teva Pharmaceutical Industries Ltd. and Cephalon Inc. for agreeing to delay the market entry of Teva's cheaper generic version of Cephalon's sleeping disorder medicine, modafinil, Executive Vice-President Margrethe Vestager announced on Thursday. She added the so-called "pay-for-delay" agreements are illegal under the European Union's antitrust rules and that the companies will be fined a total of €60.5 million.

The EU's investigation showed that Cephalon offered cash payments and side-deals to Teva in order to delay Teva's introduction of its generic version into the market in 2005. The deal lasted until 2011, when Teva acquired Cephalon. "A pay-for-delay arrangement disturbs this normal cycle. When originators buy-off potential generic entrants to delay the moment when competition starts and cheaper medicines become available, they interfere with the fine balance between the protection of intellectual property rights and the benefits of competition," Vestager concluded.

Related Links: Teva Pharmaceuticals Industries Ltd.
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