LONDON--The U.K.'s Office of Fair Trading, or OFT, Friday
published a statement alleging that GlaxoSmithKline PLC (GSK.LN)
concluded agreements which infringed competition law with several
drug companies which were trying to supply a generic version of the
antidepressant paroxetine, in order to delay competition in the
U.K. supply of the drug.
MAIN FACTS:
-OFT says GSK made deals with Alpharma Ltd., Generics (U.K.)
Ltd., and Norton Healthcare Ltd., or IVAX, over the supply of
paroxetine in the U.K.
-OFT alleges that GSK's conduct amounted to an abuse of a
dominant position in the market.
-OFT's provisional view is that these agreements included
substantial payments from GSK to the generic companies in return
for their commitment to delay their plans to supply paroxetine
independently.
-No assumption should be made at this stage that there has been
an infringement of competition law; OFT will consider the parties'
representations to the Statement of Objections before deciding
whether competition law has in fact been infringed.
-GSK shares closed Thursday at 1658 pence valuing the
pharmaceutical company at 8.14 billion pounds.
-Write to Ian Walker at ian.walker@dowjones.com
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