Healthy Skepticism Library item: 8925

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Publication type: news

French regulators fine GlaxoSmithKline US$13.2 million for 'predatory' policy
Canadian Press 2007 Mar 14
http://www.canada.com/topics/technology/news/gizmos/story.html?id=a0a410df-a261-48fe-bbff-941dcfb02fe6&k=78490

Full text:

GlaxoSmithKline’s French unit was fined US$13.2 million for hindering the use of generic drugs in hospitals through “predatory” pricing policy on an injectable antibiotic, French regulators said Wednesday.

The Conseil de la Concurrence ruled that in1999 and 2000 the Glaxo laboratory sold injectable Zinnat below cost to freeze generic drug manufacturers out of the hospital market. A GlaxoSmithKline PLC’s spokesman was not immediately available for comment Wednesday.

It was the first case in France to penalize predatory pricing. Companies typically raise prices when competition has left the market, recouping whatever money was lost on below-market pricing.

London-based Glaxo, the world’s second-largest pharmaceutical company, got good news from the U.S., however, saying Tuesday that it won approval for Tykerb. The Food and Drug Administration approved the breast cancer treatment drug, when combined with Roche’s chemotherapy Xeloda, for patients with advanced or metastasized breast cancer.

Tykerb is an oral treatment taken once a day.

Shares in Glaxo, however, slipped 0.8 per cent to $27.25 in London. Analysts say Tykerb will not be a major earner for the company.