European court upholds fine against drugmakers Lupin and Unichem

Lupin and Unichem are liable to pay 53.9 million Euros in fines after a court in Europe upheld a 2014 order holding the Indian drug makers and other companies accountable for restricting the entry of generic hypertension drug Perindropil.

A total fine of 315 million Euros have been upheld on six companies. Lupin was fined 40 million Euros, and Unichem and its subsidiary Niche Generics were fined 13.9 million Euros by the European Commission in 2014. In a stock exchange notification on Wednesday, Lupin said the General Court has upheld European Commission decision to impose the fine. "Lupin will study the General Court's judgment and evaluate further course of action," the company said.

French drugmaker Servier, which held the patent for Perindropil, was asked to pay 228.32 million Euros but the amount was reduced by the General Court.

Server had entered into settlements with several companies including Lupin ,Unichem, Teva, Matrix (Mylan), and KRKA to restrain them from challenging the patent. The European Commission had in July 2014 adopted a decision in which it found that the agreements constituted restrictions of competition by object and effect. The General Court on Wednesday confirmed that the agreements entered into by Servier constituted restriction of competition.