GSK Fined $54.68 Million Over Anti-Competitive 'Pay-for-Delay' Deal Involving Paroxetine

GlaxoSmithKline is a world-leading research-based pharmaceutical company. The company robustly integrates technology and resources to meet the healthcare needs of people worldwide, enabling them to lead more productive, comfortable, healthier, and longer lives. Headquartered in the United Kingdom, the new company holds a leading position in global market share. GlaxoSmithKline is a pioneer in four major therapeutic areas: anti-infectives, central nervous system disorders, respiratory diseases, and gastrointestinal/metabolic conditions. Furthermore, GlaxoSmithKline stands at the forefront of the increasingly vital vaccine sector.

However, on February 12, the BBC reported that GlaxoSmithKline (GSK) was fined $54.68 million by the UK Competition and Markets Authority (CMA)—the largest penalty imposed since the CMA launched its investigation in 2014. The report stated that GSK made payments to competitors to prevent them from launching generic versions of the antidepressant Seroxat (paroxetine) between 2002 and 2004. Other companies fined include Generics (UK) Ltd, Merck KGaA, Alpharma, Actavis UK, and Xellia Pharmaceuticals.

Michael Grenfell, Executive Director of the UK Competition and Markets Authority, stated: “Today’s penalty decision sends a strong signal that we will take action against illegal conduct that suppresses competition at the expense of consumers and taxpayers. This investigation demonstrates our firm commitment to enforcing measures against illegal anti-competitive practices by companies of all sizes.”

The Competition and Markets Authority (CMA) imposed penalties on GlaxoSmithKline (GSK) because the company provided over £50 million to suppliers of generic paroxetine through payments and other forms of value transfer. The CMA stated that although GSK had initiated legal proceedings against generic drug manufacturers Generics (UK) Ltd and Alpharma Ltd, it reached a settlement with both companies before the case proceeded to trial. GSK made payments to these companies in exchange for their agreement to delay the market entry of Sert’s generic paroxetine. These companies were also fined. In total, the CMA imposed fines amounting to £45 million on the companies involved in this matter.

GlaxoSmithKline (GSK) did not agree with the penalty, stating that the settlement reached with generic drug suppliers was primarily intended to resolve this costly, complex, and uncertain patent dispute as quickly as possible. The company claimed that allowing generic paroxetine to enter the market early through licensed generics would ultimately save the national healthcare system £15 million. It stated that it would provide a reasonable explanation and file an appeal.

Compiled by Chen Kun

Editor: Zhang Nan