GlaxoSmithKline Fined GBP37.61 Million for Paying off Competitors

By Ian Walker

LONDON--The U.K. Competition Authority said Friday it has fined GlaxoSmithKline PLC (GSK.LN) 37.61 million pounds ($53.77 million) for trying to delay the potential entry of generic competitors into the U.K. market for anti-depressant medicine paroxetine.

Between 2001 and 2004 GlaxoSmithkline agreed to make payments and provide other benefits, together worth more than GBP50 million, to suppliers of generic versions of paroxetine.

"The CMA has found that these payments and other value transfers were aimed at delaying the potential entry of generic competitors into the U.K. market for paroxetine," the U.K. regulator said.

In 2001, a number of pharmaceutical companies, including Generics (UK) Ltd. and Alpharma Ltd., were taking steps to enter the U.K. market for paroxetine with a generic version. Glaxo challenged these pharmaceutical companies, alleging that their generic products would infringe its patents, and started litigation proceedings against Generics and Alpharma.

However, before that litigation went to trial, the two companies entered into agreements with Glaxo, which included terms prohibiting their independent entry into the U.K. paroxetine market, the CMA said.

Glaxo's agreements with each of Generics and Alpharma infringed the competition law prohibition on anti-competitive agreements, the CMA added.

Generics has been fined GBP5.84 million and Alpharma fined GBP1.54 million.

-Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

February 12, 2016 02:47 ET (07:47 GMT)

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