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 Nridigital.com

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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland