In a decisive move, the European Union’s antitrust authority fined Teva Pharmaceutical Industries €463 million ($502 million) on Thursday for deploying a smear campaign against a competitor’s multiple sclerosis drug. The European Commission accused Teva of exploiting patent protections and spreading false information to prevent the Dutch company Synthon from launching its rival treatment.
The EU’s investigation concluded that Teva “systematically spread misleading information” about Synthon’s drug, extending its Copaxone monopoly across several European markets. By artificially prolonging patent protections, Teva successfully delayed competition, which drove up public health costs, according to the Commission. Only after Synthon’s product entered the market did prices drop by a striking 80%.
Misinformation Targeted Drug Pricing Authorities, Doctors
Margrethe Vestager, the EU’s executive vice-president in charge of competition, stated that Teva’s misinformation strategy targeted healthcare stakeholders like drug pricing organizations and doctors. The goal, Vestager said, was to erode trust in Synthon’s product by falsely questioning its safety, efficacy, and therapeutic equivalence.
