France’s competition agency, Conseil de la Concurrence, has fined GlaxoSmithKline PLC €10 million in the country’s first-ever prosecution for predatory pricing. Europe’s largest drug maker was found to have sold its injectable antibiotic Zinnat at prices below cost in a scheme designed to force a competing generic drug producer, Flavelab, to exit the market. Succeeding in eliminating Flavelab from the market, GlaxoSmithKline then raised the price for Zinnat to levels that allowed it recoup its losses and reap anticompetitive profits. According to the agency, GlaxoSmithKline’s aggressive pricing also succeeded in deterring two potential competitors, Panpharma and Ggam, whose generics would have directly competed with Zinnat.
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France fines Glaxosmithkline for predatory pricing
- Squire Sanders
- April 19 2007
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