EU Probes Pharmaceutical Industry

According to the Wall Street Journal, European Union investigators raided drug companies in several countries to examine whether large companies are abusing their market power to prevent competitors from bringing new drugs to market, or whether companies were colluding to restrain competition. AstraZeneca PLC, GlaxoSmithKline PLC, Sanofi-Aventis SA, and Pfizer Inc. said they were among the companies contacted.

EU investigators cited figures indicating that the number of new drugs launched annually has declined from an average of 40 in the late 1990s to 28 between 2000 and 2004. Officials say one concern is that companies are "misusing" patent laws to block new drugs made by rivals. Another potential violation is more straightforward -- collusion between companies, for instance, agreeing not to enter each other's markets, or taking payment not to launch a competing drug.

Steve - does this seem like an industry that has the public's best interest in mind at the moment?