EU Commission Imposes Fine on Teva: A Wake-Up Call for the Pharmaceutical Sector

The European Commission has imposed a fine of 462.6 million euros on Teva, the world's largest manufacturer of generic drugs. The allegation: Teva hindered competitors to its blockbuster Copaxone, a drug for multiple sclerosis, through unfair business practices. According to the Commission, Teva abused its dominant market position to artificially extend the patent protection of Copaxone. Additionally, the company is said to have disseminated misleading information about a competing product to impede its market entry. As early as 2022, the Commission had already charged Teva with anti-competitive behavior in this context. Margrethe Vestager, head of EU competition policy, emphasized that the fine addresses Teva's irresponsible behavior and the abuse of the patent system. She highlighted the importance of enforcing competition in the pharmaceutical sector for the affordability of medicines, ensuring treatment diversity, and promoting innovation—all for the benefit of patients and the national healthcare systems in the EU. Markets particularly affected by Teva's practices were in Belgium, the Czech Republic, Germany, Italy, the Netherlands, Poland, and Spain. Teva is said to have spread misleading information about the safety, efficacy, and therapeutic equivalence of a competing drug to secure the market dominance of Copaxone. Teva expressed deep disappointment with the decision and announced its intention to appeal. The company emphasized that it always acts legally and ethically and is a reliable partner for Europe and its healthcare systems. This is not the first time Teva has been fined in the EU. In 2020, the pharmaceutical giant, along with former rival Cephalon, had to pay 60.5 million euros for manipulating the price of the sleep medication Modafinil. Teva has also faced legal disputes outside the EU, including a 1.2 billion-dollar fine in the U.S. in 2015 for anti-competitive practices.