A PYMNTS Company

UK: Pfizer and Flynn Pharma accused of breaching competition laws

 |  August 6, 2015

The competition regulator has accused Pfizer and Flynn Pharma of breaching UK and European law by ramping up the cost of an epilepsy drug given to more than 50,000 British patients by as much as 2,600%.

The Competition and Markets Authority (CMA) said its provisional view was that the companies abused a dominant position by charging “excessive and unfair” prices for phenytoin sodium capsules. As a result, the NHS, which used to spend around £2.3m a year on the capsules, saw its bill jump to more than £50m in 2013 and more than £40m last year.

The CMA can fine companies up to 10% of annual worldwide sales if they are found to have breached competition law.

US-based Pfizer, which was in politicians’ crosshairs last year after trying to buy British rival AstraZeneca, manufactures the drug, and Flynn distributes it. The US group used to market the medicine itself, under the brand name Epanutin, but sold the rights to Flynn in September 2012. Since then the price has surged.

Full content: The Guardian

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.