The European Commission raided pharmaceutical firms across Europe today, launching a broad investigation into whether they made illegal agreements or misused patent rights to harm consumers.
Competition Commissioner Neelie Kroes identified no companies in a statement but said the European Union regulator suspected drugmakers had conspired to delay cheap generic alternatives to branded medicines.
The dawn raids and sector inquiry, which the Commission said was not based on specific suspected violations, could lead to cartel charges against companies and potentially huge fines.
Patents are the life blood of the pharmaceutical industry but critics allege drugmakers can misuse patent rights to delay the introduction of cheaper generic medicines in unjustified ways.
The cost of medicines is a vexed issue in Europe, where governments are seeking to clamp down on runaway healthcare bills at the same time as encouraging the development of the high-tech pharmaceutical and biotechnology sectors.
Ms Kroes said the aim was to ensure governments and consumers got more new products and value for money. She said Europeans spend €200 billion annually on pharmaceuticals, or about €400 for each person.
"If innovative products are not being produced, and cheaper generic alternatives to existing products are in some cases being delayed, then we need to find out why and, if necessary, take action," she said in the statement.
GlaxoSmithKline Plc, Sanofi-Aventis SA and AstraZeneca Plc - three of Europe's biggest drugmakers - said they were involved in the sector-wide inquiry and were co-operating fully.