Pharmaceutical companies Pfizer and Flynn have been accused by the UK’s competition watchdog of illegally overcharging the National Health Service (NHS) for vital anti-epilepsy drugs by abusing their dominance in the market to raise prices overnight.
The Competition and Markets Authority (CMA) has confirmed its 2016 finding that the pair exploited a loophole to charge unfairly high prices for phenytoin sodium capsules by debranding the drug, known as Epanutin, in 2012 so it would not face price regulation.
The watchdog began reassessing the case after the drugs maker Pfizer appealed against the CMA’s 2016 fine of £84.2 million (US$117.2 million) – a record at the time – for raising the cost of the anti-epilepsy drug by up to 2,600%. Flynn Pharma, a drugs distributor, faced a fine of £5.2 million (US$7.2 million) for charging excessive and unfair prices for phenytoin sodium capsules.
Although the Competition Appeal Tribunal upheld parts of the watchdog’s findings, it referred the matter of whether Pfizer and Flynn abused their market position back to the CMA for further consideration.
The CMA stated after carefully assessing further evidence it believes that the pair were able to abuse their dominant position to overcharge the NHS, by debranding the capsules which are used by an estimated 48,000 epilepsy patients in the UK to prevent and control seizures.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI