Sanofi to stop disparaging rival flu vaccine to stave off EU antitrust fine
Sanofi Faces EU Antitrust Scrutiny Over Vaccine Competition
By Foo Yun Chee and Inti Landauro
Background of the Investigation
BRUSSELS, July 8 (Reuters) - French pharmaceutical company Sanofi has offered to state publicly that a rival flu vaccine is as effective as its own, EU antitrust regulators said on Wednesday of the company, which faces a fine for allegedly disparaging its competitor.
Sanofi's proposal came two weeks after the Commission opened an investigation into whether the company disparaged a rival vaccine called "Fluad" made by CSL Seqirus, primarily in France and Germany, which competes with its "Efluelda" flu vaccine.
Potential Impact on Competition
The EU antitrust regulators said such behaviour may have restricted competition for such vaccines in Germany and France.
Sanofi's Response and Commitments
Sanofi said it was complying with the Commission to bring the proceedings to a swift conclusion.
"The submission of commitments does not imply any finding of infringement. Sanofi remains confident that it has acted, and continues to act, in full compliance with all applicable laws and regulations, including competition law," the company said.
Regulatory Actions and Industry Context
EU regulators have in recent years handed out hefty fines to drugmakers charged with badmouthing rivals. Such sanctions can be as much as 10% of a company's global annual turnover.
Details of Sanofi's Proposal
Public Statement and Website Publication
Sanofi's proposal includes publishing a statement on its German and French websites for two years, stating that national immunisation technical advisory groups in both countries have assessed both vaccines and recommend them equally for elderly people.
Commitment to Fair Competition
It will also refrain from portraying Fluad negatively, suggesting that Efluelda is safer or more effective, or mischaracterising scientific studies involving the rival.
Duration and Feedback Period
Sanofi's offer would be valid until March 2030 if accepted by the EU competition watchdog, which gave third parties until August 21 to provide feedback before it decides whether to accept the proposal.
(Reporting by Inti Landauro; editing by Foo Yun Chee and Philippa Fletcher)
