CMA sends statement of objections to Pfizer-Flynn – again

 

CMA sends statement of objections to Pfizer-Flynn – again

 

The Competition and Markets Authority (CMA) has issued a statement of objections in the remittal case concerning abuse of dominance by Pfizer and Flynn for charging unfair prices for phenytoin sodium capsules in the UK.

The Competition Appeal Tribunal held in June 2018 that the CMA had made errors in its conclusions on abuse of dominance and application of the legal test for excessive pricing.  The CAT remitted the case to the CMA insofar as it deals with excessive pricing.

In March 2020 the Court of Appeal dismissed an appeal by Flynn but allowed the CMA’s appeal in part as to excessive pricing.  This did not affect the CAT’s overall conclusions on excessive pricing and the Court affirmed the CAT’s decision on remittal.

The CMA has now issued a statement of objections provisionally finding that the parties abused their respective dominant positions.

For a four year period Pfizer's prices were between 780% and 1,600% higher than it had previously charged.

Pfizer supplied the drug to Flynn, which sold it to wholesalers and pharmacies at prices between 2,300% and 2,600% higher than those they had paid previously.

The statement of objections comes one week after the CMA fined Advanz Pharma in excess of £100 million for excessive pricing of the thyroid medication liothyronine.  The wording in the two press releases is very similar and suggests very similar theories of harm. 

https://www.gov.uk/government/news/cma-accuses-pharma-firms-of-illegal-pricing