France Fines Glaxo For Predatory Pricing
Make a commentBy Ed Silverman // March 14th, 2007 // 12:56 pm
The Conseil de la Concurrence fined the big drugmaker $13.2 million for deliberately selling its Zinnat injectable antibiotic at below cost in 1999 and 2000 to freeze generic rivals out of the lucrative hospitals market.
This occurred several years ago and there’s no indication the episode reflects an ongoing problem. What makes this noteoworthy, however, is that this marks the first case in which French regulagtors penalized predatory pricing, according to an Associated Press report posted by Canada.com.
A Glaxo spokesman told the Associated Press the drugmaker would appeal. ”GlaxoSmithKline disagrees with the position taken by the French competition council and intends to appeal the decision before the Paris court of appeal,” he says.
[tags]Generics, GlaxoSmithKline, Zinnat[/tags]