Five questions answered on GSK market abuse allegations

Company said it acted within the law.

Pharmaceutical giant GlaxoSmithKline has been accused of abusing the market by the Office of Fair Trading (OFT). We answer five questions on the allegations.

Why have the OFT alleged this about GSK?

The OFT alleges that GSK paid off rivals in order to stop generic – and cheaper – versions of its Seroxat drug coming into the market, therefore ruining competition.

What do GSK say to these allegations?

In a statement the company said it acted ‘within the law’ and that the company supports fair trading.

A statement published on the BBC said: "In fact, these arrangements actually resulted in generic versions of paroxetine entering the market before GSK's patents had expired.”
It added that the matters referred to by the OFT had already been investigated by the European Commission in 2005 – 2006.

"The issues were also reviewed in the European Commission's 2008-2009 Sector Inquiry. Neither investigation resulted in any sanctions against the company,” the statement read.

 Who are the rival drug companies that were involved?

Alpharma, Generics UK and Norton Healthcare all received money in order to hold off releasing their generic versions of anti-depression drug Seroxat. GSK accused them of infringing its patent on the drug.
What else has the OFT said?

"The introduction of generic medicines can lead to strong competition on price, which can drive savings for the NHS, to the benefit of patients and, ultimately, taxpayers," said Ann Pope, senior director of services, infrastructure and public markets at the OFT to the BBC.

"It is therefore particularly important that the OFT fully investigates concerns that independent generic entry may have been delayed in this case."

What will happen next?

The firms will be asked to respond to the allegations presented by the OFT. The OFT will then decide whether competition law has been infringed.

If the allegations are proven, all companies will be deemed as infringing the competition law. GSK will also be responsible for taking advantage of a dominant position in the market.

GSK. Photograph: Getty Images

Heidi Vella is a features writer for

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Commons Confidential: Fearing the Wigan warrior

An electoral clash, select committee elections as speed dating, and Ed Miliband’s political convalescence.

Members of Labour’s disconsolate majority, sitting in tight knots in the tearoom as the MP with the best maths skills calculates who will survive and who will die, based on the latest bad poll, observe that Jeremy Corbyn has never been so loyal to the party leadership. The past 13 months, one told me, have been the Islington rebel’s longest spell without voting against Labour. The MP was contradicted by a colleague who argued that, in voting against Trident renewal, Corbyn had defied party policy. There is Labour chatter that an early general election would be a mercy killing if it put the party out of its misery and removed Corbyn next year. In 2020, it is judged, defeat will be inevitable.

The next London mayoral contest is scheduled for the same date as a 2020 election: 7 May. Sadiq Khan’s people whisper that when they mentioned the clash to ministers, they were assured it won’t happen. They are uncertain whether this indicates that the mayoral contest will be moved, or that there will be an early general election. Intriguing.

An unguarded retort from the peer Jim O’Neill seems to confirm that a dispute over the so-called Northern Powerhouse triggered his walkout from the Treasury last month. O’Neill, a fanboy of George Osborne and a former Goldman Sachs chief economist, gave no reason when he quit Theresa May’s government and resigned the Tory whip in the Lords. He joined the dots publicly when the Resolution Foundation’s director, Torsten Bell, queried the northern project. “Are you related to the PM?” shot back the Mancunian O’Neill. It’s the way he tells ’em.

Talk has quietened in Westminster Labour ranks of a formal challenge to Corbyn since this year’s attempt backfired, but the Tories fear Lisa Nandy, should the leader fall under a solar-powered ecotruck selling recycled organic knitwear.

The Wigan warrior is enjoying favourable reviews for her forensic examination of the troubled inquiry into historic child sex abuse. After Nandy put May on the spot, the Tory three-piece suit Alec Shelbrooke was overheard muttering: “I hope she never runs for leader.” Anna Soubry and Nicky Morgan, the Thelma and Louise of Tory opposition to Mayhem, were observed nodding in agreement.

Select committee elections are like speed dating. “Who are you?” inquired Labour’s Kevan Jones (Granite Central)of a stranger seeking his vote. She explained that she was Victoria Borwick, the Tory MP for Kensington, but that didn’t help. “This is the first time you’ve spoken to me,” Jones continued, “so the answer’s no.” The aloof Borwick lost, by the way.

Ed Miliband is joining Labour’s relaunched Tribune Group of MPs to continue his political convalescence. Next stop: the shadow cabinet?

Kevin Maguire is Associate Editor (Politics) on the Daily Mirror and author of our Commons Confidential column on the high politics and low life in Westminster. An award-winning journalist, he is in frequent demand on television and radio and co-authored a book on great parliamentary scandals. He was formerly Chief Reporter on the Guardian and Labour Correspondent on the Daily Telegraph.

This article first appeared in the 27 October 2016 issue of the New Statesman, American Rage