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.
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
Featured News
Facebook’s Legal Battle Over Data Misuse Disclosure Reaches US Supreme Court
Nov 6, 2024 by
CPI
UK’s CMA Raises Concerns Over Boparan’s Feed Mill Acquisition
Nov 6, 2024 by
CPI
Mexico’s Congress to Vote on Reform Dismantling Energy and Telecom Watchdogs
Nov 6, 2024 by
CPI
Wizz Air Loses Challenge to TAROM’s State Aid in European Court
Nov 6, 2024 by
CPI
EU Probes Visa and Mastercard Over Impact of Payment Fees on Retailers
Nov 6, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Remedies Revisited
Oct 30, 2024 by
CPI
Fixing the Fix: Updating Policy on Merger Remedies
Oct 30, 2024 by
CPI
Methodology Matters: The 2017 FTC Remedies Study
Oct 30, 2024 by
CPI
U.S. v. AT&T: Five Lessons for Vertical Merger Enforcement
Oct 30, 2024 by
CPI
The Search for Antitrust Remedies in Tech Leads Beyond Antitrust
Oct 30, 2024 by
CPI