Glaxo Wrong To Cut Greek Supplies, EU Adviser Says

LUXEMBOURG (CN) - GlaxoSmithKline abused its dominance in the Greek market by reducing the supply of its own drugs to rival wholesalers, an adviser to the European Union's top court said.

In 2000 the drug company stopped selling pharmaceuticals such as Imigran for migraines and Serevant for asthma to wholesalers directly and instead supplied the drugs to hospitals and pharmacies through a company called Farmacenter AE.

Greek wholesalers claimed the interruption of supplies and practice of trading through Farmacenter amounted to anticompetitive conduct and abuse of GSK's dominant position in the Greek pharmaceutical market.

Advocate General Damaso Ruiz-Jarabo said that while some companies may be able to justify supply cutbacks as a means of protecting legitimate business interests, GSK has not made a strong case for cutting its supply to wholesalers.

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