European Commission Probes Pharmaceutical Sector

From a January 30, 2008 item by Kevin Aschenbrenner of Jaffe Legal News Service:

In a bid to discover why, despite a strengthened patent system, there has been a decline in both new and generic drugs coming onto the market in Europe, the European Commission (EC) has launched a probe of the pharmaceutical sector. It has already conducted raids on the European operations of several pharma companies. "The EC's decision to launch a sector wide investigation into the pharmaceutical industry backed up with dawn raids demonstrates the Commission's concern," says Martin Baker, who heads the Competition, Regulations and Trade Practice Group at Taylor Wessing (London). The primary focus of the investigation is on the use of patent litigation for intimidation, along with reverse payments to generics and the reasons for higher generic prices in Europe as opposed to the U.S. So far the probe is not targeting individual companies. "Its purpose is to enable the Commission to gather information and draw conclusions about the sector. If it discovers issues that need attention, it can be expected to launch proceedings against individual companies probably under Article 82. At the very least, the investigation will enable the Commission to be informed of the workings of the industry," says Baker. He is available to discuss the investigation, its aim, and what pharmaceutical companies with European operations need to know.

See here for contact information for Mr. Aschenbrenner.