EU Commission sends antitrust complaint to Johnson & Johnson and Novartis

The European Commission has informed US health care giant Johnson & Johnson (NYSE: JNJ) and Swiss drug major Novartis (NOVN: VX) of its objections regarding an agreement – often called a pay-for-delay deal - concluded between their respective Dutch subsidiaries relating to fentanyl (brand name Duragesic), a strong pain-killer.

The Commission takes the preliminary view that the agreement delayed the market entry of a cheaper generic medicine in the Netherlands, in breach of European Union antitrust rules. The sending of a Statement of Objections does not prejudge the final outcome of the investigation, the Commission notes.

Both companies have acknowledged receipt of the complaint, and say will examine the Commission’s objections. Novartis’ generics subsidiary Sandoz said in a statement quoted by the New York Times that it and Novartis would seek to rebut the accusations made by the commission by using their “rights of defense as provided for in the process.”