The Competition and Markets Authority (CMA) has announced on Tuesday (20 June) that it may consider undertakings offered by Bestway Panacea Holdings, a
parent company of Well Pharmacy, which involves divesting seven pharmacy stores under the merger deal with Lexon UK.
The Authority said: "CMA considers that there are reasonable grounds for believing that the undertakings offered by Bestway, or a modified version of them, might
be accepted by the CMA under the Enterprise Act 2002."
Last week, the Authority had announced that the merger of Bestway, and independent pharmacy owner Lexon UK could "lessen the competition between retail pharmacies" in
England.
On 26th May 2023, CMA announced the launch of its merger inquiry. A fast-track Phase 1 investigation found that the merger could lead to a significant lessening of
competition between retail pharmacies in 12 local areas located in Liverpool and North East England.
The merging businesses conceded that the deal raises competition concerns in these areas and have submitted proposals to sell pharmacies within these areas to restore
the competition that would otherwise be lost as a result of the deal.
The Competition Appeal Tribunal (CAT) has upheld the Competition and Markets Authority's (CMA) findings against two pharmaceutical manufacturers who
consistently overcharged hydrocortisone tablets for over a decade.
Auden/Actavis UK's pricing for the critical medicine 'hydrocortisone' from 2008 to 2018 constituted an abuse of their dominant market position, leading to fines
nearing £130 million, CMA said in a statement. "These companies increased the price of this crucial medicine by over 10,000 per cent, soaring from 70p to £72 within
that period. These are the highest ever CMA penalties upheld by the Tribunal," the CMA said.
In July 2021, the CMA imposed fines exceeding £265 million on hydrocortisone manufacturers Auden Mckenzie and Actavis UK, which acquired Auden's business in 2015
and subsequently became Accord-UK. The fines were imposed for abuse of dominance and collusion by both the parent companies and potential competitors.
The recent verdict, announced on September 18, comes five weeks after the Tribunal supported the CMA's decision in a separate case regarding the pricing of medicines
supplied to the NHS. In that prior case, fines amounted to £84 million.
The Competition and Markets Authority (CMA) has revoked its initial enforcement order imposed on Pharmacy2U Limited (Pharmacy2U) concerning the acquisition of
Metabolic Healthcare Ltd (Lloyds Direct).
In the revocation order issued on February 12, the regulator said its decision was "based on the evidence it has received in its assessment of the Merger to date."
The CMA served an initial enforcement order under section 72(2) of the Enterprise Act 2002 on Pharmacy2U, P2U Holdings Limited, G Square Capital II L.P., G Square
Healthcare Private Equity LLP (collectively, the Acquirer Group) and Lloyds Direct on 28 November 2023.
It announced that it was considering "whether it is or may be the case that a relevant merger situation has been created and whether the creation of that situation
has resulted or may be expected to result in a substantial lessening of competition in any market or markets in the United Kingdom (UK)."
Aspen has committed not to charge more for its six generic cancer drugs for the next 10 years in the UK, according to the Competition and Markets Authority (CMA).
The CMA also clarified that "although these commitments were offered while the UK was a part of the European Union" they remain "legally binding".
It added: "The CMA has now assisted the NHS to secure binding undertakings from Aspen, under the law of England and Wales, which enshrine the UK elements of the
commitments and are enforceable by UK courts, including in relation to the supply of these drugs in Northern Ireland and Scotland."
This allows NHS to monitor and ensure compliance by Aspen following the UK's exit from the EU.
In 2017, the European Commission began an investigation into Aspen over concerns that the company had engaged in excessive pricing for 6 off-patent cancer medicines.
Following a period of prolonged uncertainty, the Competition and Markets Authority has given its approval to Bestway Healthcare's acquisition of Lexon
UK and Asurex. The company expects the transactions to be finalised in the upcoming months.
In April, Bestway, the owner of Well Pharmacy, acquired Asurex Limited and Lexon UK Holdings, along with the 44-community pharmacy chain Norchem Group, known as
Knights Pharmacy. However, in June, the CMA raised competition-related concerns about the transaction, citing worries that the acquisition could lead to a
significant decrease in competition among retail pharmacies across 12 areas in Liverpool and the northeastern region of England.
The CMA had asked undertakings from Bestway Healthcare due to competition concerns affecting specific branches of Knights Pharmacy within the acquisition. In
July, the CMA indicated its readiness to approve the deal, contingent upon Bestway's completion of the required divestments.
According to Bestway Healthcare, This matter has been successfully resolved, as Bestway Healthcare has consented to the sale of seven pharmacies in Liverpool and
the northeastern region of England. "The impacted Well pharmacies are situated in Seaham, Bishop Auckland, Kenton, High Howden, Stockton, Moreton, and Pensby.
Buyers for all seven branches have been identified and contracts have been signed."
Bestway operates approximately 750 pharmacies nationwide in the UK under the Well brand. In April 2023, it completed its acquisition of Lexon, which operates
46 pharmacies in the UK under the Knights Pharmacy brand, and Asurex, a wholesale perfume supplier.
On 26th May 2023, CMA announced the launch of its merger inquiry. A fast-track Phase 1 investigation found that the merger could lead to a significant lessening of
competition between retail pharmacies in 12 local areas located in Liverpool and North East England.
The merging businesses conceded that the deal raises competition concerns in these areas and have submitted proposals to sell pharmacies within these areas to
restore the competition that would otherwise be lost as a result of the deal.
Colin Raftery, CMA Senior Director of Mergers, said: "Pharmacies are essential public health services, and it's vital that the loss of competition brought about
by a deal like this shouldn't leave people with reduced choice or worse services when they need medical support.
The CMA will now carefully consider whether the remedy put forward by Bestway will address its concerns and ensure that customers in the affected areas continue to
have access to good quality chemists.
Britain's competition watchdog has fined pharmaceutical companies Pfizer and Flynn £63 million and £6.7 million respectively for allegedly breaking competition
law and illegally profiting from the sale of an anti-epilepsy drug.
The Competition and Markets Authority (CMA) found that the two companies colluded to sell phenytoin sodium capsules, previously known as Epanutin, at "unfairly high
prices" for over four over years between 2012 and 2016.
The annual costs of the capsules for the NHS increased from £2 million in 2012 to approximately £50 million the following year.
CMA has accused Pfizer of charging, over four years, prices between 780 per cent and 1,600 per cent higher than what was fixed previously for the medicine used to
prevent life-threatening epileptic seizures.
Pfizer supplied the drug to Flynn, which then sold the capsules on to wholesalers and pharmacies at a price between 2,300 per cent and 2,600 per cent higher than
the prices previously charged by Pfizer.
Well Pharmacy has announced the acquisition of Lexon UK Holdings and Asurex Limited, a family-owned pharmaceutical wholesaler with five depots in Redditch,
Leeds, Durham, East Kilbride and Dublin and a network of community pharmacies across the Midlands, Northwest, and Northeast of England.
Lexon, is a family-owned business which has been in operation for over 25 years, running primarily as a pharmaceutical wholesaler for 3,000 retail pharmacy
customers across the UK and Ireland.
The business also operates 42 community pharmacies - currently trading as Knights Pharmacy - and is also a specialist developer and manufacturer of generic
pharmaceuticals and is a data and solutions provider to pharmacy.
The acquisition will be notified to the Competition and Markets Authority (CMA).
Both parties have proactively engaged with the CMA in pre-notification discussions and look forward to continuing to do so productively during the CMA review period.
Haider Choudrey, CFO of Bestway Group which own Well Pharmacy, said: "Through this acquisition we seek to augment our growth momentum and bring in even greater
benefits to both community pharmacies and patients. Well Pharmacy had been searching for a target to expand its footprint and complement its growth trajectory and
we are confident that Lexon fits this criterion."
The Competition and Markets Authority (CMA) has launched an investigation following 'rocketing prices of antibiotics in the wake of Strep A cases', Sky News
reported on Wednesday (December 14).
On Monday, the Department of Health issued a medicine supply notification for antibiotics for the treatment of Strep A.
"Supplies of antibiotics for the treatment of Group A Strep have seen a surge in demand and may be temporarily in limited supply at certain wholesalers and
pharmacies. Supplies are available with manufacturers, and deliveries into wholesalers and pharmacies are being expedited and are expected in the coming days" said
DHSC.
Sky quoted a spokesperson for the CMA as saying: "People have got real concerns about the price of antibiotics used to treat Strep A, and we want companies to be
clear about their obligations under the law.
The Competition and Market Authority (CMA) has suggested regulatory levers to curb "potential competition risk" from hub and spoke dispensing.
In its response to the hub and spoke dispensing consultation, led by the Department for Health and Social Care (DHSC) last week, the competition watchdog said that
a pro-active approach to monitoring the effect of hub and spoke dispensing and subsequent early consideration of any competition concerns was likely to be more
effective and potentially less costly than any "ex-post enforcement any ex-post enforcement or unpicking of subsequently embedded competition issues".
The competition watchdog has made a few suggestions to identify and remove the barriers to competition that might emerge with the new business models entering the
market. It has asked the department to enable a "more level playing field".
"Smaller independent pharmacies should, have improved access to automation and new dispensing models," it said.
Advanz Pharma, alongside London-based private equity firms Cinven and HgCapital, is collectively confronted with an £84 million penalty for inflating the
price of the thyroid drug by over 1,000 per cent, soaring from £20 to £248 per package over an eight-year period.
The Competition Appeal Tribunal endorsed 'all key aspects' of the Competition and Markets Authority's verdict on the companies' culpability in the case, the CMA has
said.
Advanz stood as the sole supplier of liothyronine tablets, essential for treating thyroid hormone deficiency, with the cost of a packet of these tablets surging over
12-fold between 2009 and 2017.
Although Advanz Pharma currently possesses ownership of the company, its former owners, PE firms Cinven and HgCapital, also bear responsibility for the imposed fine,
the CMA said.
"NHS annual spending on the tablets in 2006, the year before the implementation of the strategy, was £600,000, but by 2009 had increased to more than £2.3 million
and jumped to more than £30 million by 2016," Britain's competition watchdog said.
Britain's antitrust regulator, the Competition and Markets Authority (CMA) on Wednesday announced that it is investigating the acquisition of LloydsDirect
by Pharmacy2U last year, and has launched its first phase of the merger inquiry.
The completed deal between two of the UK's foremost online pharmacies was announced in a joint statement issued on 9 October, confirming that they would operate
as Pharmacy2U.
Commenting on the purchase, Kevin Heath, CEO of Pharmacy2U, then said: "Combining the best of both of our businesses, we can provide patients with greater access
and convenience."
The regulator is considering "whether it is or may be the case that this merger has resulted in the creation of a relevant merger situation under the merger
provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation has resulted, or may be expected to result, in a substantial lessening
of competition within any market or markets in the United Kingdom for goods or services."
The Pharmaceutical Services Negotiating Committee (PSNC) has raised concerns over the impact that high medicine price rises are having on contractor.
Recently, the Department of Health and Social Care (DHSC) has granted the final list of price concessions for December 2022. The latest additions bring the total
number of concessionary prices granted for the month of December to 198, surpassing the previous record of 159 granted in September 2022.
PSNC has heard from hundreds of community pharmacy contractors who are paying inflated prices for antibiotics used for the treatment of Strep A and who have rightly
been concerned about the lack of certainty around the final reimbursement prices for these medicines.
It added: "We welcomed the involvement of the Competition and Markets Authority (CMA) to look into the pricing of antibiotics. But the number of reports we are
getting from contractors about medicines price rises are just not acceptable and this goes far beyond the antibiotic crisis."