Lundbeck files appeal over EC pay-for-delay fine

Denmark-based CNS specialist drugmaker Lundbeck (LUND: CO) has filed its appeal against the European Commission with the General Court, with the aim of having the decision that the company had violated violated European Union antitrust rules that prohibit anticompetitive agreements (Article 101 of the Treaty on the Functioning of the European Union – TFEU) annulled and/or the fine of 93.8 million euros ($111.2 million at current exchange rates) reduced (The Pharma Letter June 19).

In fining Lundbeck, the Commission said that, in 2002, Lundbeck agreed with several companies to delay the market entry of cheaper generic versions of Lundbeck's branded citalopram, a then blockbuster antidepressant. These pay-for-delay deals were with generic companies Alpharma (now part of Zoetis, fined 10.5 million euros), Merck KGaA (fined 21.4 million euros)/Generics UK (Generics UK is now part of Mylan, fined 7.8 million euros), Arrow (now part of Actavis, fined 10.0 million euros) and Ranbaxy (fined 10.3 million euros).

Lundbeck strongly disagrees with the Commission's decision, and considers that it contains several serious legal and factual errors, and several violations of Lundbeck's right of defense. Through its appeal, Lundbeck seeks a remedy to these serious problems.