2nd UPDATE: EU Raids Drugmakers On Antitrust Concerns
October 06 2009 - 12:18PM
Dow Jones News
The European Commission Tuesday said it has conducted surprise
antitrust inspections of several pharmaceutical firms.
The commission, the European Union's executive arm, didn't name
any of the companies involved. French drugmaker Sanofi-Aventis
(SAN.FR) said it was one of the companies raided.
While the commission declined to comment on the nature of the
suspected violations, it has been investigating the steps
brand-name drug-makers take to prevent generic competitors from
bringing their products to market. E.U. antitrust commissioner
Neelie Kroes said in July that deals between big pharmaceutical
companies and generic firms raise concerns that the industries are
agreeing to avoid competing with each other.
"There is something rotten" with the deals, she said.
The U.S. Justice Department is also investigating whether these
deals violate antitrust laws.
The inspections announced Tuesday are among the first steps in a
commission antitrust probe, which can often take years to
complete.
Merck KGaA (MRK), Bayer AG (BAYN.XE), GlaxoSmithKline PLC (GSK),
UCB SA (UCB.BT) and Solvay SA (SOLB.BT) weren't among the firms
raided, spokespeople for the companies said Tuesday.
-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487;
matthew.dalton@dowjones.com
(Marietta Cauchi in London contributed to this article.)