Pharmaceutical Business review

European Commission imposes fine on Ranbaxy, others for halting generic drugs

Lundbeck agreed with each of the nine companies in 2002 to delay the launch of generic medicines of its anti-depressant.

Ranbaxy Laboratories was fined more than Rs800m (€10.32m), Lundbeck €93.8m, while Merck with €21.4m, of which €7.77m was imposed jointly on Merck and its former subsidiary Generics UK.

In 2009, the EU published a report on the pharmaceutical industry highlighting that the "pay-for-delay" agreements between brand-name drug companies and generic manufacturers have resulted in consumers paying more than 20% for medicines.

Because of the resulting higher consumer costs, the US Supreme Court declared that US regulators could challenge deals between brand-name drug firms and generic competitor.