EC Raids Pharmaceutical Companies

The European Commission has reportedly raided the offices of pharmaceutical companies suspected of breaching EU competition rules by operating a cartel or abusing market position.  Without identifying the companies, the Commission said only that the inspections had taken place in “several” EU Member States. The raids took place ahead of the publication of a 400-page Commission report on the EU pharmaceutical sector launched in January 2008.  On November 28, 2008, the EC published its preliminary report, finding evidence that companies had engaged in practices with the objective of delaying or blocking market entry of competing medicines. Practices by generic companies include multiple patent applications for the same medicine, initiation of disputes and litigation, conclusion of patent settlements which constrain market entry of generic companies and interventions before national authorities when generic companies ask for regulatory approvals. The Commission said that where successful, these practices result in significant additional costs for public health budgets – and ultimately taxpayers and patients – and reduce incentives to innovate.

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