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The European Union warned of a wave of antitrust investigations into
major drug makers, saying they were deliberately stalling cheaper
generic versions of their own medicines once exclusive patents expire,
reported by the Associated Press. The Commission will now step up its
antitrust enforcement and monitor deals between major and generic drug
makers. The EU also started an investigation into France''s Les
Laboratoires Servier for hindering the launch of generic versions of
its heart disease drug perindopril. Regulators said they suspected that
Servier did deals with generic rivals Krka, Lupin, Matrix, Niche
Generics Ltd and Teva to hold back cheaper versions. The EU''s antitrust
division called for a EU-wide patent and litigation system and for
national governments to speed up generic drug approvals. But it blamed
drug makers too for trying to discredit generics with misleading
campaigns and misusing marketing authorizations to delay generic
launches. The EU says generic drugs are on average 40-percent cheaper
than their branded rivals two years after they launch and play a key
role in driving down health costs for Europe''s aging and ailing
population. The European Commission said it would monitor deals between
major pharmaceutical companies and generic drug makers. EFPIA says
companies have a right to defend patents for the medicines they develop
and that the vast majority of these deals help competition because they
settle legal action and allow the transfer of technology from one
company to another. The EU report found that generic versions often
don''t launch until at least seven months after the patent on the
original version expires. This cost European patients some euro3
billion more for medicines between 2000 and 2007, it said. The European
Union spent euro214 billion on medicines in 2007, or euro430 per
person. State health insurance programs carry most of that cost.
Regulators said there was a decline in the number of new drugs reaching
the market. They gave no details but said it would closely monitor the
pharmaceutical market to check what is holding back innovation. Only 27
new types of drugs were launched from 2000 to 2004, far fewer than the
40 that hit the market from 1995 to 1999, it said. Pharmaceutical
companies are under pressure from the loss of exclusive patents over
top-selling drugs and higher costs for research and development. Many
are cutting costs and staff to try and stay profitable.
