The European Commission has issued a statement of objections to Lundbeck, the Danish pharma company, and several generics companies for an alleged anti-competitive agreement in breach of Article 101 of the Treaty on the Functioning of the European Union. The Commission has been concerned that they entered into agreements that had the effect of delaying by two years the entry onto the market of much cheaper generics products when Lundbeck’s patents for citalopram, an antidepressant, expired. The so-called “pay-for-delay” agreements involved payments to purchase generic citalopram stock for destruction or guaranteed profits in distribution agreements. The statement of objections, which was also sent to the generics companies, is just the first step in proceedings. The companies involved will have a right to reply and then the Commission will issue its final decision.
