EU Copaxone antitrust findings hit Teva

In March 2021 the European Commission opened an official antitrust investigation to examine whether Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) had illegally delayed the start of marketing of generic rivals of its branded Copaxone multiple sclerosis treatment.

Yesterday, the European Commission notified the Israeli pharmaceutical company that its initial findings were that Teva had violated EU antitrust laws over practices delaying competition for Copaxone. Among other things, the European Commission alleges that Teva artificially extended Copaxone's patent and distributed misleading data about rival products.

Following the European Commission's interim findings, Teva's share price fell 5.7% on Wall Street and was down 7.85% today on the Tel Aviv Stock Exchange (TASE).

Copaxone was Teva's flagship product and 'cash cow' for many years, although in recent year the multiple sclerosis treatment's contribution to the company's financial results has fallen significantly, due to generic rivals and other competition, especially in the US. In 2021, Teva's Copaxone sales in Europe fell 2% (by 6% after the impact of exchange rate fluctuations) to $391 million, compared with 2020, due to the fall in prices because of competition.

European Commission policy EVP Margrethe Vestager said, "Until today, there is not yet a treatment for the chronic illness of multiple sclerosis. So innovative medicines can make a major difference to patients' quality of life. Effective protection of intellectual property is key to this scientific progress. Our concern is that Teva may have misused the patent system to shield itself from competition. It may have spread misleading information to discredit its closest competitor, to the detriment of patients and public health systems across the EU."

Teva said, "We regret the European Commission's decision to continue the investigation against Teva. The declaration by the Commission is a disappointment to Teva, which cooperated intensively with the Commission from the moment it learned about the investigation in 2019. Teva will defend itself vigorously and continue discussions with the Commissioner to find a solution to the issue, a matter that could take several years. While we would prefer to try and convince the Commission that its interim position is wrong, we are also ready in the event of legal proceedings and other procedures.

"Teva remains completely committed to the legal conduct of our affairs and our mission to provide access to pharmaceuticals to millions of people daily. The investigation will not distract us from supporting Copaxone patients and their families."

Published by Globes, Israel business news - en.globes.co.il - on October 11, 2022.

EU Copaxone antitrust findings hit Teva

The European Commission has notified the Israeli pharmaceutical company that its initial findings were that Teva violated EU antitrust laws over practices delaying competition for Copaxone.