EU fines Ranbaxy,other firms for blocking cheaper drugs

European antitrust regulators fined nine drugmakers,including Denmarks Lundbeck and Indias Ranbaxy,a total of euro 146

European antitrust regulators fined nine drugmakers,including Denmarks Lundbeck and Indias Ranbaxy,a total of euro 146 million for blocking the supply of a cheaper anti-depressant to the market,the first EU sanction against such deals.

The European Commission,which acts as competition regulator across the 27-member European Union,handed Lundbeck the largest fine,totalling euro 93.8 million. Lundbeck said it would appeal the EUs decision but cut its guidance for operating profits this year as a result of the fine.

Ranbaxy said it also plans to appeal to the EU General Court in Luxembourg,Europes second-highest,after it was fined euro 10.3 million.

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The punishments follow a 2009 report by the European Commission on the pharmaceutical sector,which said pay-for-delay agreements between companies lead to consumers paying as much as 20 per cent more for their medicines.

The EU action came two days after the US Supreme Court said US regulators could challenge deals between brand-name drug firms and generic rivals because of the resulting higher consumer costs.

The other companies to be penalised were Arrow,Resolution Chemicals,Xellia Pharmaceuticals,Alpharma – which is now part of Zoetis Products LLC,and AL Industrier.

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