Friday, 27 November 2020

European Commission issues fine in ‘pay for delay’ pharma investigation after a 9 year probe

 

 

European Commission issues fine in ‘pay for delay’ pharma investigation after a 9 year probe

The European Commission has fined Teva Pharmaceutical Industries Ltd and Cephalon Inc EUR 60.5 million for entering into an unlawful patent settlement, in breach of Article 101 of the TFEU.

The Commission found that Teva agreed to delay for several years the market entry of a cheaper generic version of Cephalon's drug for sleep disorders, modafinil, after expiry of Cephalon's patents.

Teva received cash payments and other side-deals, including a distribution agreement, a licence on Teva modafinil patents, raw materials from Teva, and access to valuable clinical data.

This is the fourth "pay-for-delay" decision that the Commission has adopted.

This one is striking because of the form taken by the payments and value transfers.

https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2220

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