OFT Alleges GlaxoSmithKline Concluded Pacts Which Infringed Competition Law

LONDON--The U.K.'s Office of Fair Trading, or OFT, Friday published a statement alleging that GlaxoSmithKline PLC (GSK.LN) concluded agreements which infringed competition law with several drug companies which were trying to supply a generic version of the antidepressant paroxetine, in order to delay competition in the U.K. supply of the drug.

MAIN FACTS:

-OFT says GSK made deals with Alpharma Ltd., Generics (U.K.) Ltd., and Norton Healthcare Ltd., or IVAX, over the supply of paroxetine in the U.K.

-OFT alleges that GSK's conduct amounted to an abuse of a dominant position in the market.

-OFT's provisional view is that these agreements included substantial payments from GSK to the generic companies in return for their commitment to delay their plans to supply paroxetine independently.

-No assumption should be made at this stage that there has been an infringement of competition law; OFT will consider the parties' representations to the Statement of Objections before deciding whether competition law has in fact been infringed.

-GSK shares closed Thursday at 1658 pence valuing the pharmaceutical company at 8.14 billion pounds.

-Write to Ian Walker at [e-mail]

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