EU antitrust updates
European Commission Fines Teva EUR 462.6 Million Over Patent System Misuse and Disparagement Campaign
On 31 October 2024, the European Commission imposed a EUR 462.6 million fine on Teva for abusing its dominant position to delay competition against its multiple sclerosis treatment, Copaxone. The Commission found that Teva misused patent procedures to extend Copaxone’s exclusivity and disseminated misleading information about a competitor’s product to hinder its market entry and uptake.
Teva, a global pharmaceutical firm, held a basic patent for the active ingredient glatiramer acetate in Copaxone, which expired in 2015. The Commission’s investigation revealed that Teva extended Copaxone’s market exclusivity in multiple EU countries through two main strategies:
The Commission determined that Teva’s actions collectively violated Article 102 of the Treaty on the Functioning of the European Union (TFEU), marking the first time the Commission has fined a company for these specific practices. Teva’s conduct may have prevented price reductions, impacting public health budgets. Following inspections of Teva’s facilities in 2019, the Commission opened proceedings in 2021 and issued a Statement of Objections in 2022.
- Patent Manipulation: As its original patent neared expiration, Teva filed multiple divisional patent applications, creating a web of secondary patents focused on production processes and dosage. Teva used these patents to initiate injunctions against competitors. When it appeared likely that these patents would be revoked, Teva withdrew them, avoiding formal invalidity rulings and prolonging legal uncertainty for rivals.
- Disparagement Campaign: Teva launched a systematic campaign to undermine a competing glatiramer acetate product, spreading misleading information about its safety and efficacy despite approval from relevant health authorities. This campaign targeted key stakeholders, including healthcare professionals and policymakers, to slow or block market entry in several EU states.