Low level of “potentially problematic” patent settlements in EU pharma sector

The European Commission's report on patent settlement agreements, also referred to as “pay-for-delay” deals, concluded between originator and generic companies in the pharmaceutical sector in 2012 shows that the number of settlements that may give rise to antitrust concerns in the European Union is continuously low.

This shows the industry's increased awareness of potentially problematic practices. As such settlements may delay the market entry of cheaper generic medicines; this is good news for consumers and taxpayers, the Commission notes. The report also finds that the overall number of patent settlements has increased compared to the previous monitoring periods. This demonstrates that companies can successfully settle their disputes within the boundaries of the EU antitrust rules, it says.

Commission Vice President in charge of competition policy Joaquín Almunia commented: "Our fourth monitoring report shows that companies are increasingly aware of the competition concerns that some settlements may raise. It also demonstrates that the Commission's action has not prevented companies from settling patent disputes in line with the antitrust rules."