EU fines Israeli drug-maker Teva $500 million over patent abuse in MS drug market

The European Commission fined Israeli drugmaker Teva Pharmaceuticals over 460 million euros or $500 million on Thursday (October 31), accusing the company of abusing patent protections for its multiple sclerosis drug Copaxone and undermining a rival’s development efforts.

According to the commission, Teva “misused the patent system” to extend its exclusive rights over Copaxone, whose active ingredient is glatiramer acetate. Teva also allegedly engaged in a “disparagement campaign” against Synthon, the only other company authorized to produce a similar drug in Europe.

Teva “spread information contradicted by health authorities’ findings, seeking to sow doubt on the safety, efficacy and therapeutic equivalence of the rival product,” the EU Commission said.

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The company allegedly targeted doctors and groups involved in drug pricing and reimbursement to hinder its competitor’s market entry in several countries, the commission said.

In a statement, Teva said it disagreed with the EU Commission’s decision, which it described as “based on legal theories … that are extreme, untested, and factually unsupported.” It said it intends to appeal the decision and that it has supported the MS community since 1996.

The commission estimated that Teva’s actions may have deprived European countries of potential savings, noting that alternatives to Copaxone could have been up to 80 per cent cheaper. The fine requires Teva to pay 462.6 million euros ($502 million) and to avoid similar practices in the future.

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This isn’t the first time Teva has faced legal trouble. Last year, Teva was ordered to pay $225 million to settle price fixing charges in the US related to sales of a cholesterol-lowering drug. The US Department of Justice said the agreement also required Teva to divest its business making and selling the drug pravastatin, a generic version of the brand-name medicine Pravachol.

With inputs from agencies