Novartis Antibiotic Subject of ITC Probe

Novartis’ sale of a generic form of GlaxoSmithKline’s antibiotic Augmentin in the U.S. will be investigated by the International Trade Commission, the agency’s Web site said.

Glaxo, Europe’s largest drug maker, asked the U.S. agency last month to block its Swiss rival from importing a generic form of the medicine, saying the bacteria used to develop it was stolen by a former Glaxo employee.

The British company is trying to stop Novartis’ cheaper version from taking market share from its second-best selling product. Glaxo shares have lost about a quarter of their value since a U.S. judge in May invalidated its patents for the product, which accounted for about $2 billion in annual sales.

The agency is investigating Glaxo’s claim of “misappropriation of trade secrets and unfair competition,” it said on its Web site. The International Trade Commission weighs the effect of imports on U.S. companies and U.S.-based subsidiaries of foreign companies.