BioCentury
ARTICLE | Company News

Actavis, Lundbeck, Merck KGaA, Ranbaxy, Xellia Pharmaceuticals A/S, Zoetis neurology news

June 24, 2013 7:00 AM UTC

The European Commission fined H. Lundbeck €93.8 million ($125 million) after ruling that deals with four generic companies for Lundbeck's antidepressant Celexa citalopram violated competition law. The commission said that after Lundbeck's basic patents covering Celexa expired, the company only held a number of process patents with more limited protection, which allowed generic versions of the selective serotonin reuptake inhibitor (SSRI) to enter the market. The EC said that Lundbeck then paid the generic companies to stay out of the market for the duration of the agreements "without giving the generic producers any guarantee of market entry thereafter." Lundbeck, which plans to appeal the decisions, said "there is no question about the validity of Lundbeck's process patents at issue." The company also believes the "agreements did not restrict competition in the market beyond the protection already offered…via the patent rights."

The commission also imposed fines on the generic manufacturers, including a €21.4 million ($28.5 million) fine for the U.K. generics subunit of Merck; €10 million ($13.3 million) fine for Arrow Group ApS; €10.5 million ($14 million) for Zoetis and partner Xellia; and €10.3 million ($13.7 million) for Ranbaxy. The U.K. generics subunit of Merck is now part of Mylan. Actavis, formerly known as Watson Pharmaceuticals Inc., acquired Arrow in 2012. Additionally, the EC said that "any person or firm affected by anti-competitive [behavior] as described in this case may bring the matter before the courts…and seek damages." ...