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Beyond pay-for-delay – the EU-Commission s investigation into patent filing practices and communication measures | Allen & Overy LLP

[co-authors: On 4 March 2021, the European Commission ( Commission) opened a formal investigation into alleged anti-competitive conduct by the pharmaceutical company Teva. The Commission suspects Teva of having deployed a strategy with the intention of delaying the market entry of generic drugs that competed with Teva’s originator drug Copaxone. This may have amounted to an abuse of a dominant position prohibited under Art. 102 TFEU, the Commission states in its press release. While the Commission has sanctioned patent settlements that delay the market entry of generic drugs (“pay-for-delay”) in a number of cases, with this new investigation, the Commission is exploring two novel “theories of harm”. The authority is concerned that Teva’s patent filing practices – namely the filing and selective withdrawal of divisional patents – and communication measures impeded the market entry of generic drugs.

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