UK Sues Servier For Thwarting Generic Rivals

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bribe-flickr2The UK government has filed a lawsuit seeking about $351 million in damages against Servier Laboratories over charges the French drugmaker “abused” its dominant position by delaying rivals from launching generic versions of a blood pressure drug, The Financial Times writes.

Health Secretary Andrew Lansley and more than 150 primary care trusts claim that between July 2001 and July 2007, Servier schemed to prevent a generic form of Aceon, or perindopril, from reaching the market, the paper continues. Consequently, the National Health Service paid “elevated prices.”

The Servier patent on Aceon expired in 2003, but a generic did not appear in the UK until July 2007. The lawsuit cites documents showing Servier applied to the European Patent Office for another patent during that time, but “knew that patent to be invalid and/or had no honest belief that it was or might be valid,” the FT writes.

The suit also charges Servier tried to enforce its patent through legal proceedings against rivals and reached deals with competitors – including paying up nearly $16 million - to forestall generic launches in the UK market. Servier abused its “dominant position,” which violated the Competition Act 1998, and restricted competition, according to the FT. “We are aware of this ongoing case, we are contesting the claim and are confident that the right outcome will be achieved,” Servier tells the paper.

The suit comes amid a two-year inquiry by the European Commission into concerns that brand-name drugmakers in several countries struck anticompetitive deals to stall cheaper generic versions of their own meds after patents had expired or used their dominant market positions to squeeze rivals. Last year, Servier was charged with providing bad info to the agency (see this and this).

Servier has also made headlines over a scandal concerning its now-banned Mediator appetitte depressant, which was linked to heart-valve damage. The French drugmaker denied allegations by government investigators that risks were deliberately concealed. The pill, which was prescribed to overweight diabetics, was withdrawn in November 2009 (back story).

bribe pic thx to donhankins on flickr

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