EU: Commission crackdown on pay-for-delay shows results

The European Commission’s efforts to curb so-called pay-for-delay schemes appears to be working, as reports show a decrease in such deals made in 2012 compared to earlier years.

Reports say just seven percent of agreements made between drug makers in 2012 involved pay-for-delay agreements; that number compares with an average of 22 percent of pay-for-delay agreements made between 2000 and 2008.

The data suggests the Commission’s campaign against the agreements, which allow brand name drug firms to pay cheaper, generic drug makers to keep their versions off pharmacy shelves, is working and does not hamper companies from settling pharmaceutical patent disputes, the majority of which did not raise EU competition concerns.

Recent cases involving such pay-for-delay schemes involve the Commission’s fine imposed on Lundbeck and eight other companies last June; more recently, sources say the Commission is planning a fine against Johnson & Johnson and Novartis. The regulator is also investigating Teva and subsidiary Cephalon as well as France-based Servier.

The data was announced by European Commissioner Joaquin Almunia during a speech on Monday.

Full Content: Reuters

Read the full speech here.

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