Lundbeck antitrust proceedings begin

Antitrust complaints

Danish drug maker H Lundbeck yesterday became the victim of a formal antitrust investigation by the European Commission, as potential breaches of business practice rules set by the European Union (EU) came to light.

According to reports in today's Pharma Times, the Commission will now investigate the incident as a "matter of priority" after it appears that not only have business practice rules been breached, but the company has also reportedly abused its dominant market position.

The Commission claims that it will "probe unilateral behaviour and agreements" by Lundbeck related to delays in entry of generic versions of its antidepressant Celexa/Cipramil (citalopram) into European Economic Area (EEA) markets: Lundbeck’s patent on the drug, a selective serotonin re-uptake inhibitor (SSRI), expired in 2003.

Reports show that the ensuing investigation was opened after the Commission received certain information related to the breaches of the laws after it conducted an initial enquiry into the state of the pharmaceutical sector. Initially, the enquiry was meant to examine the ways originator firms obstruct the entry of generic drugs on to the market, but its specific findings allowed it to draw certain conclusions relating to competition law.

Formal proceedings

European Competition Commissioner Neelie Kroes first warned drug-makers that the Commission was "now capitalising" on its pharmaceutical sector inquiry with new cases last September. At the time, she added that they should "expect" and "look out for" new antitrust investigations over the coming months.

Lundbeck yesterday confirmed that formal EU proceedings had begun, with the investigation seemingly relating to an initial raid by the Commission on Lundbeck's premises - in Denmark, Italy and Hungary - back in 2005. At that time, the firm said the visit was probably related to citalopram.

"When it comes to generic entry, every week and month of delay costs money to patients and taxpayers. We will not hesitate to apply the antitrust rules where such delays result from anticompetitive practices," warned Kroes yesterday.

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