Watchdog slams illegal price fixing between pharma companies
The Competition and Markets Authority has slammed two pharmaceuticals companies over anti-competitive price fixing.
An investigation into the actions of Actavis UK (formerly Auden Mckenzie, based in Castleford) and Concordia by the CMA has led the watchdog to allege that the companies signed illegal agreements to prolong high prices for a life-saving drug.
Actavis, which was owned by Castleford-based Teva Pharmaceutical during the period in question, between January 2013 and June 2016, was sold to Intas Pharmaceuticals in October 2016.
During this period, Actavis UK allegedly entered into agreements under which Actavis UK incentivised Concordia not to enter the market with its own competing version of hydrocortisone tablets.
The CMA said that Actavis UK instead supplied Concordia with a fixed supply of its own 10mg tablets for a very low price for Concordia to resell the product to customers in the UK.
Actavis UK remained the sole supplier of the tablets in the UK during most of this period, when the cost of the drug to the NHS rose from £49 to £88 per pack.
In December, a separate CMA investigation accused Actavis UK of charging excessive prices to the NHS for the tablets following a 12,000% price rise over the course of several years.
Hydrocortisone tablets are used as the primary replacement therapy for people whose adrenal glands do not produce sufficient amounts of natural steroid hormones (adrenal insufficiency), as for example with Addison’s disease.
Andrew Groves, CMA senior responsible officer said: “Anti-competitive agreements can cost the NHS, and ultimately the taxpayer, by stopping competition bringing down the cost of lifesaving drugs like hydrocortisone tablets.
“We allege these agreements were intended to keep Actavis UK as the sole supplier of a drug relied on by thousands of patients – and in a position which could allow it to dictate and prolong high prices.
“As always at this stage in an investigation, these findings are provisional and no conclusion should be drawn at this stage that there has in fact been any breach of competition law. We will carefully consider any representations of the companies under investigation before determining whether the law has been infringed.”
The CMA opened this investigation in April last year.
In December 2016 the CMA fined the pharmaceutical suppliers Pfizer and Flynn Pharma a total of nearly £90 million for charging excessive prices for the anti-epilepsy drug phenytoin sodium, after that drug was also de-branded. In February 2016 the CMA fined a number of pharmaceutical companies a total of £45 million for anti-competitive ‘pay for delay’ agreements and conduct in relation to the supply of the anti-depressant drug paroxetine. The CMA has two other ongoing investigations into the pharmaceutical sector.
