Brussels - The European Union's executive on Tuesday
launched an investigation into deals between pharmaceutical firms and
their rivals who produce cheap generic versions of their drugs in a
bid to find out whether they are colluding unfairly.
The move comes after the European Commission ran a sweeping survey
of the pharmaceutical sector which concluded that there were clear
doubts concerning the way the sector operates.
The commission, the EU's executive, 'addressed requests for
information to certain pharmaceutical companies asking them to submit
copies of their patent settlement agreements,' the Brussels-based
body said in a statement.
The probe concerns deals between the companies which develop new
types of drugs, and firms which then identify the active ingredient
and produce a so-called 'generic' copy, which is generally much
cheaper.
The commission 'is in particular looking at patent settlements
where an originator company pays off a generic competitor in return
for delayed market entry of a generic drug,' the statement said.
The original enquiry 'highlighted the risk that certain types of
patent settlements may have negative effects on European consumers by
depriving them of a broader choice of medicines at lower prices,' the
statement said.
The probe covered a 'selected number' of originator and generic
drug companies. Once they reply, the commission is to 'analyse the
agreements and publish a short report providing a statistical
overview.'
Agreements which raise suspicions of unfair dealings could be hit
with a more detailed investigation, the statement said.
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