First fine for "predatory pricing" in France for GSK
France's Competition Council has fined UK-headquartered drug giant GlaxoSmithKline 10.0 million euros ($13.2 million) for "abusively obstructing" the entry of generic antbiotics from the country's hospital market, report the Cercle Finance.
In 1999 and 2000, GSK, then Glaxo Wellcome France, was found to have sold the injectable antibiotic Zinnat (cefuroxime axetil) at below cost in order to deter generic drugmakers from competing in France. The Competition Council determined that the UK company had behaved in a predatory fashion. In its ruling, the Council said: "these practices slowed down the development of generic drugs in the hospital market and thereby inflicted serious damage to that economic sector."
According to local reports, one effect of GSK's pricing policy was to drive generic drugmaker Flavelab out of the hospitals market altogether.
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