European Commission Accuses Teva of Abusing EU Antitrust Rules

Strategic Insights -

The European Commission has launched an investigation into pharmaceutical company Teva's alleged anticompetitive practices related to its blockbuster medicine, Copaxone, a treatment for multiple sclerosis. The Commission has informed Teva of its preliminary view that the company may have engaged in practices intended to delay competition, including artificially extending patent protection and spreading misleading information about a competing product. This could have resulted in harm to patients, public health systems, and competitors, as well as inflated public health spending.

Key Takeaways:

  • The European Commission has launched an investigation into Teva's alleged anticompetitive practices related to Copaxone, a treatment for multiple sclerosis.
  • Teva is accused of abusing its dominant position in the markets for glatiramer acetate in Belgium, Czechia, Germany, Italy, the Netherlands, Poland, and Spain.
  • The Commission preliminarily found that Teva artificially extended glatiramer acetate's basic patent protection by filing and withdrawing secondary patent applications, known as the "divisionals game."
  • Teva is also accused of implementing a systematic disparagement campaign targeting healthcare professionals and casting doubts about the safety and efficacy of a competing glatiramer acetate medicine.
  • If the Commission's preliminary views are confirmed, Teva's behaviour would infringe Article 102 of the Treaty on the Functioning of the European Union, which prohibits the abuse of a dominant position.
  • This could result in a fine of up to 10% of Teva's annual worldwide turnover, as well as harm to competitors, patients, and public health systems.

Statistics:

  • Up to €500 million per year in the EU is spent on Copaxone alone, which could be inflated due to Teva's alleged anticompetitive practices.
  • The Commission carried out unannounced inspections at the premises of several Teva subsidiaries in October 2019.
  • On 4 March 2021, the Commission initiated proceedings against Teva Pharmaceutical Industries Limited and Teva Pharmaceuticals Europe BV.
  • Article 102 of the TFEU prohibits the abuse of a dominant position, which can be enforced by the European Commission or national competition authorities.

Sources:

  • European Commission press release, Brussels, [date]
  • European Commission, Statement of Objections on Teva's abusive practices
  • Article 102 of the Treaty on the Functioning of the European Union
  • Antitrust Regulation (Council Regulation No 1/2003)