CMA fines Advanz Pharma for excessive and unfair pricing

 

CMA fines Advanz Pharma for excessive and unfair pricing

The CMA has imposed penalties of over £100 million on Advanz Pharma for inflating the price of thyroid tablets.

The CMA finds that Advanz increased the price of thyroid tablet packs from £20 in 2009 to £248 in 2017, an increase of 1,110%.

The CMA says that this fine “sends a clear message” to the pharmaceutical sector that infringements of competition law will not be accepted.

The practices at issue were found to be an abuse of a dominant position contrary to the chapter II prohibition.  In 2007, Advanz developed a ‘price optimisation’ strategy whereby it de-branded certain drugs which faced limited generic competition.  In so doing, it could remove them from the price regulation regime which applied to branded drugs, allowing it pricing freedom.

The CMA finds that as a result of the infringements the NHS lost out.  In the year before the infringements were implemented NHS spending was £600,000, but by 2009 this had increased to over £2.3 million and was £30 million by 2016.

This decision is part of the CMA's ongoing work to tackle against anti-competitive practices in the pharmaceutical sector.

 

https://www.gov.uk/government/news/cma-fines-pharma-firm-over-pricing-of-crucial-thyroid-drug