The European Commission imposed a €462.6 million fine on Teva Pharmaceuticals, accusing the Israeli company of abusing its market position by deliberately spreading false information to undermine a rival product for multiple sclerosis. The fine adds to Teva's mounting legal troubles as the company faces similar allegations in the United States.
According to the European Commission, Teva allegedly sought to protect its drug, Copaxone, by distributing misleading claims about a competing product from Dutch manufacturer Synthon. The claims targeted healthcare providers and pricing organizations, casting doubt on the competitor’s safety, efficacy, and equivalence, which the Commission argued contradicted findings from health authorities.
Targeting Doctors and Drug Pricing Organizations
"Teva systematically spread doubts about the competing product to delay or obstruct its market entry," stated Competition Commissioner Margrethe Vestager. Teva's campaign, aimed at physicians and reimbursement agencies, reportedly involved efforts to undermine the new treatment's credibility, ultimately impacting its availability to patients.
Additional Allegations in the U.S.
Teva’s legal issues are not limited to Europe. The U.S. Department of Justice recently announced that Teva would pay $450 million to settle civil lawsuits involving accusations of bribery intended to increase sales of Copaxone and manipulate the pricing of the cholesterol drug Pravastatin. Teva’s settlement addresses allegations of financial incentives offered to boost Copaxone sales, raising broader concerns about anti-competitive practices within the pharmaceutical industry.
Background on Prior Regulatory Actions
Teva’s conduct has previously attracted regulatory scrutiny. In 2014, the company was fined as part of a broader investigation into “pay-to-delay” agreements that delayed the release of generic drugs for high blood pressure, sparking concerns in both the EU and U.S. over practices that drive up healthcare costs by delaying access to affordable medications.
These cases underscore the competitive dynamics in pharmaceuticals, where branded drugmakers can see billions in sales rapidly decline upon the introduction of generic alternatives.
