PARIS (AFP) — The French competition authority on Thursday slapped a record $500 million fine on pharma groups Novartis, Roche and Genentech over market abuses in sales of macular degeneration drugs.
The trio were found to have abused dominant market position to sell their Lucentis drug, developed by U.S. firm Genentech and used in the treatment of age-related macular degeneration (AMD), to the detriment of another much cheaper treatment, Avastin.
Swiss firm Novartis marketed Lucentis outside the U.S. But doctors realized that Genentech's anti-cancer drug Avastin could have positive effects on the eye disease and began to prescribe it.
Roche, which, since 2009, has a 100% capital stake in Genentech, markets Avastin outside of the United States.
An injection of Avastin costs around 30 to 40 euros ($41), compared with a launch price of 1,161 euros ($1,371) for Lucentis — ramping up the cost for French social security, which picks up the full tab for the treatment needed by some 150,000 people in France.
The AFC ruled the three firms had collaborated to maximize AMD earnings and make it harder for health authorities to compare the relative cost of Lucentis with that of Avastin.
Novartis was hit with the bulk of the fine at $455 million, while Roche and Genentech must pay more than $70 million between them.
© Agence France-Presse
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
