BBC News, 19
April 2013
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GlaxoSmithKline accused of market 'abuse' by the OFT |
The OFT
alleges that the pharmaceutical giant paid rivals to delay the release their
own versions of GSK's Seroxat treatment.
Alpharma,
Generics UK and Norton Healthcare all received money not to enter the market
with their copies of Seroxat, it said.
GSK said it
"acted within the law".
"GSK
supports fair competition," it said.
"In
fact, these arrangements actually resulted in generic versions of paroxetine
entering the market before GSK's patents had expired," the company said in
a statement.
Moreover,
it added that "the OFT investigation covers matters that have already been
investigated by the European Commission in 2005-2006".
"In
March 2012 the Commission announced that it had formally concluded its enquiry
with no further action," it said.
"The
issues were also reviewed in the European Commission's 2008-2009 Sector
Inquiry. Neither investigation resulted in any sanctions against the
company."
Dominant
player
The generic
drug makers were attempting to supply the UK market with their versions of
paroxetine, which GlaxoSmithKline brands as Seroxat, the OFT said. Seroxat is
used to treat depression.
GSK accused
them of infringing its patent, so to resolve this dispute Glaxo effectively
paid the three companies off, according to the OFT.
"The
paroxetine supply agreements under investigation were terminated in 2004,"
GSK said.
If proven,
the allegations would be an infringement on the part of all the parties of
competition law and on the part of GlaxoSmithKline an abuse of its dominant place
in the market.
"The
introduction of generic medicines can lead to strong competition on price,
which can drive savings for the NHS, to the benefit of patients and,
ultimately, taxpayers," said Ann Pope, senior director of services,
infrastructure and public markets at the OFT.
"It is
therefore particularly important that the OFT fully investigates concerns that
independent generic entry may have been delayed in this case."
The firms
will now be asked to respond to its allegations, before the OFT makes a
decision on whether or not competition law has been infringed.
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