Teva Faces EU Antitrust Fine Over Copaxone Practices

Teva Pharmaceutical Industries, the world’s leading manufacturer of generic drugs, is expected to face a significant antitrust fine from the EU in the coming weeks.

The fine stems from allegations that the Israeli pharmaceutical giant engaged in anti-competitive behavior related to its popular multiple sclerosis medication, Copaxone. Sources with direct knowledge of the situation revealed that Teva is accused of disparaging rival products to maintain Copaxone’s market dominance.

The European Commission’s investigation, which began with dawn raids in 2019 and led to formal proceedings in 2021, centers on claims that Teva misused the patent system. The Commission contends that Teva’s actions were designed to artificially prolong Copaxone’s patent protection and prevent competition. This enforcement action reflects the EU’s broader concerns about practices that might hinder innovation in the pharmaceutical sector, especially in a landscape constrained by tight healthcare budgets.

Related: FTC Intervenes in Teva’s Inhaler Litigation Against Amneal Amid Patent Crackdown

Bloomberg reports that the European Commission has not commented on the impending fine, and Teva has not yet responded to requests for a statement. The Commission’s rigorous stance underscores the EU’s commitment to addressing anti-competitive practices that could impact market dynamics and drug affordability.

In a related development, Teva and its subsidiary Cephalon faced a fine of 60.5 million euros ($66.7 million) in 2020 for engaging in pay-for-delay schemes, where they agreed to delay the release of a cheaper generic version of Cephalon’s sleep disorder medication. This fine was part of a broader EU crackdown on such practices between brand-name drugmakers and their generic counterparts.

Source: Bloomberg