Brussels, Nov 26 (AP) The European Union has fined two pharmaceutical companies for colluding to keep a cheap alternative to a sleep disorder medicine off the market for their profit and at the expense of patients.

EU antitrust commissioner, Margrethe Vestager, said that Teva pharmaceuticals and Cephalon, a company it later acquired, must pay 60.5 million euros (USD 72 million) for agreeing between themselves to delay for years the launch of Teva's cheaper version of Cephalon's blockbuster Modafinil. In return for the delay, Teva got beneficial side deals and some payments.

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Vestager said that “Teva's and Cephalon's pay-for-delay agreement harmed patients and national health systems, depriving them of more affordable medicines." Modafinil treats excessive daytime sleepiness and under the brand name Provigil it accounted for more than 40% of Cephalon's turnover.

A cheap alternative would have had a serious impact on the company, and the EU argued that Cephalon enticed Teva in 2005 to stay out of its market. In 2011, Teva acquired Cephalon.

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Teva did not immediately respond to a request for comment. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)