MSD hit with €39m fine over contraceptive generic delay
The probe in Spain centred on the delayed entry of generic versions of a branded contraceptive | The commission found evidence of “unjustified legal action”.
Spain’s competition authority has fined Merck Sharp and Dohme (known as MSD outside of the US) €39 million ($39 million) for alleged anti-competitive practices.
The National Commission on Markets and Competition (CNMC) said that MSD—which is known as Merck & Co in the US—had sought to delay the entry of a generic version of its NuvaRing contraceptive device.
The CNMC said that MSD, which had enjoyed a monopoly on vaginal contraceptive rings in Spain between 2002 and 2018, had prevented competitor Insud Pharma from marketing its own device Ornibel.
According to the competition watchdog, Merck took “unjustified legal action” against Insud. This included obtaining a court order barring Insud from manufacturing or selling its devices in Spain.
“MSD deployed a strategy of deception to the judicial body, hiding relevant factual and technical information,” said CNMC.
It added: “The lack of transparency in the information provided during this process was a determining factor in obtaining the requested precautionary measure, paralysing the marketing and sale of the Ornibel between September and December 2017.”
For abusing its dominant position, MSD was fined €39 million. The pharmaceutical company has two months to appeal against the resolution.
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