EU accuses drugmakers of blocking cheaper generics

BRUSSELS, Nov 28 (Reuters) - Drug companies are delaying or blocking the entry of cheaper generic medicines in Europe, pushing up bills for taxpayers and reducing the incentive for innovation, an EU report said on Friday.

Competition Commissioner Neelie Kroes said preliminary results of a probe showed competition in the pharmaceuticals industry did not work as well as it should.

Practices such as multiple patent applications for the same drug, litigation and settlement deals delayed generics going on sale, the EU executive said.

Based on a sample of medicines facing patent expiry in 17 EU states, the EU executive estimated that delays in getting those generics on the market had cost healthcare providers some 3 billion euros ($3.9 billion) between 2000 and 2007.

"We now have a solid view of what is happening and why: the next step is to discuss our findings with the stakeholders and to draw the necessary conclusions," Kroes said in a statement.

"It is still early days, but the Commission will not hesitate to open antitrust cases against companies where there are indications that the antitrust rules may have been breached," she said. (Reporting by Bate Felix; Writing by Ben Hirschler; Editing by Ingrid Melander and Dale Hudson)