EU Regulatory: Giant Pharmaceuticals Are Fined Again for Disorganizing Market
On last Tuesday, EU regulators announced another pecuniary penalty event on pharmaceutical giant Johnson & Johnson and Novartis because they tried to stop the selling launch of a cheaper painkiller biosimilar. They have to accept a fine of €16.3 million (i.e. $ 22 million); meanwhile European Commission warned other drugmakers for similar anti-competitive behavior.
This is the second time that European Commission punished this so-called delayed market launch via pecuniary transaction. In such agreements, the famous drug manufacturers usually pay to the biosimilar competitors so that their competitor won’t sell the biosimilar drugs at a lower price.
However, this kind of behaviors of the pharmaceutical industry has attracted the attention of regulatory agencies around the world. Such agreements force consumers to pay more and increase the cost of public health care.
According to the report of EU market competition regulatory bodies, the agreement between Johnson & Johnson and Novartis made cancer patients unable to get a cheaper generic version of the Fentanyl up to 17 months since July 2005. For this, Johnson & Johnson and Janssen Pharmaceutica were fined €10.8 million, and Novartis and its Sandoz Pharmaceuticals were fined €5.5 million.
“Such warns and punishments on these companies are trying to standardize market behaviors and create a better environment for public interest and economic growth.” EU committee comment.