COMMISSION IMPOSES FINE OF € 60.5 MILLION ON TEVA AND CEPHALON

27.11.2020

The European Commission has imposed fine of € 60.5 Million on pharmaceutical companies Teva and Cephalon for delaying entry of cheaper generic medicine.

In the case, the companies make an agreement which violated EU antitrust rules, to delay for several years the market entry of a cheaper generic version of Cephalon's drug for sleep disorders, modafinil, after Cephalon's main patents had expired. In other words, Cephalon induced Teva not to enter the market with a cheaper version of modafinil, in exchange for a package of commercial sidedeals that were beneficial to Teva and some cash payments. Modifinil which was Cephalon’s best-selling product is a medicine used for the treatment of excessive daytime sleepiness associated in particular with narcolepsy.

In this context, the Commission investigation has found that for several years, this “pay-for-delay” agreement eliminated Teva as a competitor and allowed Cephalon to continue charging high prices even if the main modafinil patent had long expired.

The fines imposed by the Commission on Teva and Cephalon are €30 million and €30.5 million, respectively, amounting in total to €60.5 million.

You can read the full text of the decision here.

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Kind regards,

Zumbul Attorneys-at-Law

info@zumbul.av.tr