Commission accepts CSL Vifor commitments to redress disparagement of competitor

The European Commission has accepted commitments by Vifor, part of the global biotechnology giant CSL, to redress what it said was possible unfair “disparagement” of Danish company Pharmacosmos.

The case was based on an initial complaint by specialist pharmaceutical company Pharmacosmos, who accused Vifor, of disseminating potentially misleading information about the safety of their iron deficiency treatment, Monofer. 

“Vifor has committed to undo the effects of its potentially misleading communications on the safety of the closest competing medicine for intravenous iron treatment,” Margrethe Vestager, executive vice president in charge of competition policy, said on Monday (22 July).

“Today’s decision makes these commitments legally binding on Vifor and re-establishes a level playing field to the benefit of consumers.”

The Commission’s preliminary investigation found that Vifor’s own iron treatment, Ferinject, is the largest player in the market for intravenous ferous injections in nine EU countries. Monofer is its closest competitor. 

Vifor has agreed to launch a comprehensive multi-channel communication campaign to rectify any “potentially misleading messages” previously disseminated by Vifor. Pharmacosmos will also be able to use the communications of Vifor in their communications with healthcare professionals. 

A CSL Vifor spokesperson told Euractiv it was fully committed to complying with its obligations and will implement all necessary measures described in the commitments.

“We are grateful for the constructive discussions with the European Commission.”

The company still contests that it engaged in unlawful conduct contrary to competition law and said that “the commitments were offered without any admission of liability.”

In its press release, the Commission said that failure to honour the commitments made may result in a fine of up to 10% of its total annual turnover, or a periodic penalty of 5% per day of its daily turnover for every day of non-compliance.

The Commission said it could impose any fines without having to find an infringement of EU antitrust rules.

In February 2024, Vifor and Pharmacosmos reached a settlement, and this was taken into consideration in the Commission’s decision to choose a commitments procedure.

A Commission spokesperson told Euractiv that whereas the settlement aimed at compensating Pharmacosmos, today’s commitments aim to rectify and undo the potential anti-competitive effects Vifor’s past conduct may have had on the market.

This is the Commission’s second investigation into potential abuses relating to “exclusionary disparagement” of competing products in the pharmaceutical industry.

In 2002, the Commission opened a similar case against Teva concerning a competitor’s medicine used in the treatment of multiple sclerosis.

[Edited by Zoran Radosavljevic] 

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