A PYMNTS Company

Novartis Cleared of Wrongdoing in Swiss Competition Commission Investigation

By  |  October 10, 2024

In a development for Novartis, Switzerland’s Competition Commission (COMCO) has officially dropped its investigation into the pharmaceutical giant’s handling of patents related to its blockbuster immunosuppressant, Cosentyx. This marks the end of a two-year probe into whether Novartis was improperly using patent lawsuits to stifle competition for the drug.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The investigation, which began in September 2022, was aimed at determining if Novartis had unlawfully used a “blocking patent” to prevent other companies from producing or supplying competing medications. The focus of the probe was Novartis’ use of patents it acquired from Roche subsidiary Genentech in 2020. When the company took legal action against rivals like Eli Lilly, it raised concerns that Novartis might be leveraging these patents to unfairly dominate the market, potentially violating Switzerland’s Cartel Act.

    However, according to Fierce Pharma, COMCO has now concluded that Novartis’ actions were in line with standard patent law practices and did not constitute an unlawful restraint of competition. In its official statement, COMCO explained, “The investigation revealed that Novartis’ actions finally were common practice in the field of patent law and, further, did not confirm the above indications of an unlawful restraint of competition. Therefore, COMCO discontinued the investigation.”

    Read more: Greek Regulator Investigates Novartis for Alleged Unfair Practices

    The Swiss watchdog also confirmed that it had consulted with the European Commission (EC) during the course of its investigation. The EC reached the same conclusion, opting to discontinue its own proceedings against the company.

    Novartis welcomed the decision, with a company spokesperson stating, “Novartis is pleased about the official closure of the investigation by the Swiss Competition Commission (COMCO), who concluded that all allegations concerning the assertion of patent rights in the field of dermatology treatments were unfounded.” The statement emphasized that Novartis had acted in full compliance with Swiss competition law throughout the process.

    The investigation initially drew attention after Novartis pursued legal action against Eli Lilly, among others, based on the patents it acquired from Genentech. This move led COMCO and the EC to investigate whether the company was using its patents to unfairly bolster its dominant market position for Cosentyx, a drug widely used to treat psoriasis and other autoimmune conditions. According to Fierce Pharma, Novartis eventually dropped its lawsuit against Lilly in October 2022 after the two companies reached a financial settlement.

    Source: Fierce Pharma