Drugmaker Servier loses EU court fight over pay-for-delay deals (updated)

Unichem Laboratories

27/06/2024 09:45

(Adds details)
    By Foo Yun Chee
       BRUSSELS, June 27 (Reuters) - French drugmaker Servier
on Thursday lost its court battle against a European Union fine
for deals with rivals to delay sales of generic copies of its
top-selling blood pressure medicine perindopril. 
    The European Commission fined Servier 331 million euros
($354 million) in 2014 - and also fined generic drugmakers Teva
 TEVA.TA , Unichem and its subsidiary Niche, Matrix which is now
known as Mylan Laboratories, Krka and Lupin - for their
so-called "pay-for-delay" deals between 2005 and 2007.
    Antitrust regulators on both sides of the Atlantic have for
years been cracking down on such deals, where brand names pay
rivals to delay the launch of cheaper generic versions of their
drugs.
    A lower tribunal cut Servier's fine to 228 million euros in
2018, citing errors in EU regulators' analysis, after the
company challenged the EU decision. Both Servier and the EU
competition watchdog then appealed to Europe's top court.   
    The Luxembourg-based Court of Justice of the European Union
backed the Commission.
    "The Court dismisses the appeals of Lupin, Niche Generics,
Unichem Laboratories, Matrix, Teva and Biogaran. It thereby
confirms the judgments of the General Court that held that the
agreements concluded by Servier and Biogaran constituted
market-exclusion agreements and restricted competition," judges
said.
    "Those companies therefore remain liable for the fines
imposed by the Commission," they said.
    The Commission said Servier aimed to protect perindopril
from competition in the EU. The pharma industry argued that
pay-for-delay deals help to stave off lengthy and costly
litigation.
    The cases are C-144/19 P Lupin v Commission, C-151/19 P
Commission v Krka, C-164/19 P Niche Generics v Commission,
C-166/19 P Unichem Laboratories v Commission, C-176/19 P
Commission v Servier and Others, C-197/19 P Mylan Laboratories
and Mylan v Commission, C-198/19 P Teva UK and others v
Commission, C-201/19 P Servier and others v Commission and
C-207/19 P Biogaran v Commission.
    ($1 = 0.9353 euros)

 (Reporting by Foo Yun Chee; Editing by Alex Richardson and Mark
Potter)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))