GSK fined £37m for ‘anti-competitive’ conduct

GSK has been fined more than £37 million ($53 million) by the UK government for “anti-competitive conduct” in relation to ‘pay for delay’ deals centring on anti-depressant drug Seroxat (paroxetine).

In a statement released today, February 12, the Competition and Markets Authority (CMA) said the £37.6 million fine was being put in place because of a breach in competition law.

According to the CMA, GSK agreed deals with two generic drug makers between 2001 and 2004 whereby it agreed to pay more than £50 million to prevent the launch of generic versions of Seroxat.

The practice is known as ‘pay-for-delay’.

The generic manufacturers, Generics UK (GUK) and Alpharma, have also been fined.

GUK and its former parent company Merck were fined £5.8m while Alpharma, now owned by Actavis, was hit with a £1.5m fine.

At the time of the deals, Seroxat was known as a ‘blockbuster’ drug and in 2001 UK sales exceed £90 million, the CMA said.

Michael Grenfell, executive director for enforcement at the CMA, said: “Today’s decision sends out a strong message that we will tackle illegal behaviour that is designed to stifle competition at the expense of customers, the NHS and taxpayers.”