GSK Appeals $54M Fine for ‘Pay-for-Delay’ Accusations

GlaxoSmithKline is appealing a $54 million fine from the UK’s Competitions and Market Authority over pay-for-delay allegations, contending the company’s conduct was “objectively justified.”

A February decision from the CMA found that GSK violated the UK’s Competition Act by making cash payments to generic companies to delay their knockoffs of the antidepressant drug Seroxat. The generic drugmakers listed in the appeal are Generics UK, Alpharma and Ivax Pharmaceuticals UK.

GSK argues that the CMA failed to establish that the agreements restricted competition.  The drugmaker does, however, note any imposed fine should have been “substantially smaller.”