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EU regulators charge Teva over pay-for-delay drug deal

Published 07/17/2017, 06:16 AM
Updated 07/17/2017, 06:20 AM
© Reuters. A building belonging to Teva Pharmaceutical Industries, the world's biggest generic drugmaker and Israel's largest company, is seen in Jerusalem

BRUSSELS (Reuters) - EU antitrust regulators charged Israeli drugmaker Teva (TA:TEVA) on Monday with doing an illegal deal with Cephalon to delay selling a cheaper generic version of the latter's blockbuster sleep disorder drug.

Teva, the world's biggest generic drugmaker, reached the deal with Cephalon as part of a settlement to end a lawsuit over alleged infringement of Cephalon's patents on the drug. This involved cash payments from Cephalon, which Teva later acquired in 2011.

The European Commission said the deal may have pushed up prices of the drug, modafinil.

"The patent settlement agreement between Cephalon and Teva may have caused substantial harm to EU patients and health service budgets," the EU competition enforcer said in a statement.

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