Novartis Investigated for Anti Competitive Practices

Novartis is being inspected by The Swiss Competition Commission (COMCO) regarding a potential illegal exploitation of a patent to stifle competition, with their offices searched earlier this week.

“The opening of an investigation does not imply any finding of wrongdoing or any financial impact. Novartis is fully cooperating with the authorities and is confident to clarify the legitimacy of its position.”

A medication for skin conditions is at the core of the investigation. Novartis reportedly filed legal proceedings to reduce competition using the grounds of a patent. COMCO’s goal is to determine if there has been an exploitation of their dominating market position, or if they enforced a “blocking patent.”

This is not the first scandal for Novartis, with similar investigations taking place in the past. In 2021 they had to address civil claims connected to a criminal price-fixing action, where the Sandoz generics division settled on a $185 million payment.

The year before that they saw the imposition of a $526 million fine in France for similar competition related behaviour which included their partner, Roche.
Novartis won’t comment further at this point.

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