Westcountryman

By Jonathan Russell
Last Updated: 1:24am GMT 17/01/2008

The European Union launched a series of dawn raids on UK and Continental European drug companies in a competition crackdown on the sector.

Drug giants including GlaxoSmithKline in the UK and Novartis in Switzerland had material examined by EU representatives.

The crackdown is understood to be in response to concerns over perceived delays in the development of new drugs and the amount of time it takes for generic drugs to reach the market.

Competition Commissioner Neelie Kroes said: "Individuals and governments want a strong pharmaceuticals sector that delivers better products and value for money. But if innovative products are not being produced, and cheaper generic alternatives to existing products are in some cases being delayed, then we need to find out why and, if necessary, take action."

In statements released yesterday afternoon both GSK and Novartis, which saw its generics arm Sandoz raided, said they were co-operating fully with the EU over the investigation. Other companies raided included Johnson & Johnson, Wyeth, Teva, AstraZeneca, Pfizer, Merck and Sanofi-Aventis.

The EU was keen to point out that the investigation was not a cartel case, meaning it does not have particular information on companies committing competition law infringements.

However, the EU is known to be keen to investigate the use of intellectual property rights and litigation to slow down the release of new innovative products and generic drugs.

The EU said it carried out the dawn raids as it was concerned that much of the information and documents it sought could be easily destroyed.

In 2005, the EU fined AstraZeneca €60m (£45m) for misusing the patent system and procedures for marketing drugs to block or delay the entry of generic drug competitors to its ulcer drug Losec.

GlaxoSmithKline said: "GSK confirms that an investigation by the European Commission has commenced into certain competition aspects in the pharmaceutical sector. GSK cannot comment on the subject matter of the investigation, as this is confidential."

Source: EU raids major drug companies - Telegraph

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Emphasis is mine. I wasn't aware that the EU had jurisdiction in Switzerland? Unless this was a joint operation?

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Manus haec inimica tyrannis ense petit placidam sub libertate quietam - "This hand of mine, which is hostile to tyrants, seeks by the sword quiet peace under liberty."

Britannist

Good point. If it was a joint operation I hope the Swiss Government/authorities got agreement in writing from the EU that if the Swiss (who, for those reading this who do not know, are not a member of the EU to their credit and good fortune) wanted to organise a similar operation in an EU nation the EU would let them do so.