Novartis, Roche, Genentech Get Joint EUR444 Million Fine From French Antitrust Authority -- Update
September 09 2020 - 12:00PM
Dow Jones News
--Pharmaceutical companies Novartis, Roche and Genentech were
fined for a total of EUR444 million by the French antitrust
authority for alleged abuse of dominant position
--The authority's decision refers to practices aimed at
sustaining the sales of eye-treatment drug, Lucentis
--According to the authority, the companies' conduct had the
effect of reducing prescriptions of Avastin, an equally effective
but much cheaper drug
By Cecilia Butini
France's antitrust authority said Wednesday that it has fined
pharmaceutical companies Novartis AG, Roche Holding AG and
Genentech Inc. a total of 444 million euros ($552.8 million) for
abusive practices related to the marketing of an eye-disease
treatment.
The authority said the three companies abused their collective
dominant position with respect to the sales of Lucentis, a drug
developed by Genentech laboratories to treat age-related macular
degeneration, a condition which causes low vision in people over
50.
According to the French authority, the three companies'
practices were aimed at curbing the use of another equally
effective drug, Avastin, which costs 30 times less than Lucentis.
In particular, the authority said, Novartis is supposed to have
sought ways to discredit physicians' decisions to prescribe
Avastin, normally used as an anticancer drug, exaggerating the
risks connected to its use in ophthalmology.
All three companies are said to have engaged in obstruction and
collusion to slow down authorities' initiatives to approve the
off-label use of Avastin to treat age-related macular
degeneration.
A spokeswoman for Roche said the company disagrees with and is
disappointed by the decision made by the French competition
authority, adding that Roche acted with the best interest of
patients and their safety in mind, and in compliance with
regulations set out by the health authorities. The company will
assess next steps in the case, the spokeswoman added.
Genentech, which is a subsidiary of Roche, didn't immediately
respond to a request for comment. Novartis didn't return a request
for comment.
The EUR444 million fine comprises a EUR385.1 million penalty for
Novartis and EUR59.7 million for Roche and Genentech, the
competition authority said.
The antitrust regulator cited the limited competition that
exists within the health-care sector, which makes the sanctioned
practices "particularly serious," it said.
The regulator also mentioned the existing public debate over the
effect of an expensive drug like Lucentis on the French social
security system. The treatment, which costs EUR1,161 an injection,
can be fully reimbursed by social security. Its counterpart
Avastin, on the other hand, has a price tag of EUR30 to EUR40 an
injection, according to the antitrust authority.
Write to Cecilia Butini at cecilia.butini@wsj.com
(END) Dow Jones Newswires
September 09, 2020 12:45 ET (16:45 GMT)
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