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Nov 01, 2024

Drugmaker Teva Pharmaceuticals fined $500M by European regulators - UPI.com

Oct. 31 (UPI) -- The European Commission fined Teva Pharmaceuticals $503 million for delaying competition posed by rival generic drugmakers, the company's second major financial penalty this month.

Oct. 31 (UPI) -- The European Commission fined Teva Pharmaceuticals $503 million for delaying competition posed by rival generic drugmakers, the company's second major financial penalty this month.

The multinational drug manufacturer headquartered in Israel "abusively disparaged a competing drug," used to treat multiple sclerosis, the commission said in a statement.

The commission found Teva either tried to slow down competitors or block them entirely from entering the market and competing with its Copaxone drug, used to treat the chronic disease affecting the central nervous system.

"With these consecutive actions, we send a clear message to dominant pharmaceutical companies that we will not tolerate the use of disparagement campaigns to foreclose competing medicine," the commission said in a statement.

"Teva misused the patent system to artificially extend patent protection for Copaxone active ingredient. Patent rights are essential to incentivize innovation and play a crucial role in the competitive process. But we found that Teva disrupted the patent process and delayed a final decision on the validity of its patent claims. By doing so, Teva undermined the objectives of the patent system, which is to provide legal certainty and to protect genuine innovation."

Authorities contend Teva has been engaged in anti-competitive practices for up to nine years in some cases.

"Today's decision to impose an antitrust fine on Teva for disparagement and misuse of the patent system reaffirms the commission's commitment to competition enforcement in the pharmaceutical sector," the European Commission said in its statement.

"With today's decision, the commission contributes to keeping drugs affordable, preserving choice of treatment and fostering innovation, to the benefit of EU patients and national healthcare systems."

In a statement issued Friday, Teva said it intends to appeal the decision, arguing it has been cooperating with the commission since 2019.

"Teva disagrees with the commission's legal theories which are legally untested and, Teva believes, not supported by the facts. The company will vigorously defend its position on appeal and is well prepared financially to mount a defense," the company said in its statement.

The decision marks the second major fine levied against the pharmaceutical giant.

Earlier this month, the company agreed to pay $450 million to resolve two claims alleging it violated the Anti-Kickback Statute, according to the U.S. Justice Department.

In 2022, the company settled accusations over its role in the opioid crisis in New York State, ultimately agreeing to pay a $523-million fine.

Teva Pharmaceuticals stock fell by $0.28 or 1.53% as of 10:56 a.m. EDT, sitting at $18.31.