Israeli drug company Teva likely to be hit with EU antitrust fine in coming weeks

Teva, the world’s largest generic drugmaker, will be hit with an EU antitrust fine in the coming weeks for disparaging a rival product to its blockbuster multiple sclerosis medicine Copaxone, people with direct knowledge of the matter say.

The European Commission in 2022 charged the Israeli company with breaching EU antitrust rules, saying its anti-competitive practices included misusing the patent system to artificially extend Copaxone’s patent and shield it from competition.

The EU competition enforcer’s tough line underscores its concerns that such practices could stifle innovation in the pharmaceutical industry, with countries constrained by tight healthcare budgets.

The Commission declines to comment and Teva has not immediately responded to requests for comment.

The long-running case against Teva started with EU dawn raids in 2019 that led to the opening of an investigation in 2021.

Companies found guilty of EU antitrust violations risk fines of as much as 10 percent of their global annual turnover, although this is rare.

Teva and its subsidiary Cephalon were fined 60.5 million euros ($66.7 million) in 2020 for agreeing to delay a cheaper generic version of Cephalon’s sleep disorder medicine, part of the EU’s crackdown on so-called pay-for-delay deals between brand name drugmakers and their generic rivals.