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UK: Glaxo, other drug makers appeal fines for pay-to-delay deals

By  |  April 20, 2016

GlaxoSmithKline is appealing a $54.5 million fine that was recently levied by UK regulators for illegally conspiring with several generic rivals to delay marketing of a lower-cost version of its Paxil antidepressant. The generic manufacturers were also fined a total of about $7 million and are appealing those decisions, as well, according to documentsposted this week on a UK government web site.

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    The appeals come two months after the UK Competitions and Market Authority found that between 2001 and 2004, Glaxo made payments totaling about $72 million to several generic companies. As we wrote previously, the deals were reached as part of a settlement to end patent litigation that was filed by Glaxo against the generic drug makers.

    The UK regulator issued the fines amid ongoing concern over these settlements, which are often called pay-to-delay deals. In these deals, a brand-name drug company pays cash or transfers something else of value to a generic rival, which then agrees to delay launching its own version of the medicine.

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