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Nabarro leads on GSK £37m CMA fine over anti-competitive deals

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Nabarro has advised GlaxoSmithKline (GSK) on a £37m fine imposed by the competition regulator over allegations it illegally stifled the launch of a cheap rival drug.

The fine is the largest penalty ever levied by the Competition and Markets Authority (CMA), which launched in 2014.

A statement by the CMA said GSK was guilty of “illegal behaviour to stifle competition at the expense of the NHS and taxpayers”.

The row centres on GSK paying its competitors up to £50m between 2001 and 2004 to delay their introductions of generic versions of its antidepressant Seroxat.

GSK turned to Nabarro partner Brian Sher and Brick Court Chambers’ James Flynn QC on its negotiations with the regulator. The pharmaceutical giant said it disagreed with the penalty and was considering an appeal.

The firm is on GSK’s panel for competition and EU law advice, according to The Lawyer Market Intelligence.

The CMA handled its legal work on the penalty in-house. The regulator appointed ex-Slaughter and May partner Sarah Cardell as general counsel in 2013 following the merger of the Competition Commission and the Office of Fair Trading.

The fine comes amid an international crackdown on “pay-for-delay” deals by regulators in the US and Europe.

Last summer the CMA launched an investigation into Pfizer over allegations it charged “excessive” prices for an anti-epilepsy drug. The drug company turned to Clifford Chance on the probe.


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