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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Voters are turning against Brexit but the Lib Dems aren't benefiting

Labour's pro-Brexit stance is not preventing it from winning the support of Remainers. Will that change?

More than a year after the UK voted for Brexit, there has been little sign of buyer's remorse. The public, including around a third of Remainers, are largely of the view that the government should "get on with it".

But as real wages are squeezed (owing to the Brexit-linked inflationary spike) there are tentative signs that the mood is changing. In the event of a second referendum, an Opinium/Observer poll found, 47 per cent would vote Remain, compared to 44 per cent for Leave. Support for a repeat vote is also increasing. Forty one per cent of the public now favour a second referendum (with 48 per cent opposed), compared to 33 per cent last December. 

The Liberal Democrats have made halting Brexit their raison d'être. But as public opinion turns, there is no sign they are benefiting. Since the election, Vince Cable's party has yet to exceed single figures in the polls, scoring a lowly 6 per cent in the Opinium survey (down from 7.4 per cent at the election). 

What accounts for this disparity? After their near-extinction in 2015, the Lib Dems remain either toxic or irrelevant to many voters. Labour, by contrast, despite its pro-Brexit stance, has hoovered up Remainers (55 per cent back Jeremy Corbyn's party). 

In some cases, this reflects voters' other priorities. Remainers are prepared to support Labour on account of the party's stances on austerity, housing and education. Corbyn, meanwhile, is a eurosceptic whose internationalism and pro-migration reputation endear him to EU supporters. Other Remainers rewarded Labour MPs who voted against Article 50, rebelling against the leadership's stance. 

But the trend also partly reflects ignorance. By saying little on the subject of Brexit, Corbyn and Labour allowed Remainers to assume the best. Though there is little evidence that voters will abandon Corbyn over his EU stance, the potential exists.

For this reason, the proposal of a new party will continue to recur. By challenging Labour over Brexit, without the toxicity of Lib Dems, it would sharpen the choice before voters. Though it would not win an election, a new party could force Corbyn to soften his stance on Brexit or to offer a second referendum (mirroring Ukip's effect on the Conservatives).

The greatest problem for the project is that it lacks support where it counts: among MPs. For reasons of tribalism and strategy, there is no emergent "Gang of Four" ready to helm a new party. In the absence of a new convulsion, the UK may turn against Brexit without the anti-Brexiteers benefiting. 

George Eaton is political editor of the New Statesman.