Morning Briefing
Summaries of health policy coverage from major news organizations
In The UK, GlaxoSmithKline Faces $53 Million Fine Over Generic Drug Delay
The Wall Street Journal: GlaxoSmithKline Fined $53 Million In Generic Drug Delay Ruling
U.K. pharmaceutical company GlaxoSmithKline PLC has been fined £37.6 million ($53.7 million) by the U.K.’s Competition and Markets Authority for trying to delay the potential entry of competitors into the U.K. generic-drugs market for antidepressant drug paroxetine. Between 2001 and 2004, GlaxoSmithKline agreed to make payments and provide other benefits, together valued at more than £50 million, to suppliers of generic versions of paroxetine, the CMA said in a news release. (Walker, 2/12)
Reuters: UK Watchdog Fines GSK $54 Million Over 'Pay-For-Delay' Drug Deals
Britain's competition watchdog has fined GlaxoSmithKline $54.4 million for market abuse in striking deals to delay the launch of cheap generic copies of its former blockbuster antidepressant Seroxat. The CMA move is the latest example of regulators trying to curb "pay-for-delay" deals by drug companies and follows previous actions by U.S. and European antitrust authorities. The watchdog first accused GSK of anti-competitive behaviour over Seroxat in April 2013, but it has only now handed out fines. (2/11)
Also, Davita is facing scrutiny by federal authorities -
The Wall Street Journal: U.S. Authorities Investigating DaVita HealthCare Unit
Federal authorities are looking into whether a pharmacy provider owned by DaVita HealthCare Partners Inc. was involved in false claims being filed to the government for prescription medications, the company disclosed on Thursday. Interim Chief Financial Officer James K. Hilger said during a conference call that DaVita executives had contacted the government in September after an internal compliance review found some potential billing irregularities and other issues at its DaVita Rx LLC unit. (Armental, 2/11)
The Denver Post: DaVita's Rx Connect Division Under False-Claims Investigation
DaVita HealthCare Partners Inc., which swung to a fourth-quarter net loss, said Thursday it is setting aside $22.5 million to cover expected damages related to false-claims allegations in its pharmacy business. DaVita disclosed Thursday that its DaVita Rx subsidiary is under investigation for allegations that the division presented false claims for payment to the government for prescription medications. (Wallace, 2/11)
