Group items tagged

The Competition and Markets Authority(CMA) has disqualified a former director of the pharmaceutical wholesaler Lexon for allegedly breaking competition law. Pritesh Sonpal - who has been accused of illegally sharing commercially sensitive information with competitors - will not be allowed to take up any director role or be involved in the management of any company based in England, Scotland or Wales for four years. The CMA in March 2020 found that Lexon - along with the pharmaceutical companies King Pharmaceuticals and Alissa Healthcare Research - illegally shared commercially sensitive information about the antidepressant nortriptyline, used by thousands of NHS patients, to inflate the price. Lexon was fined £1.2 million for breaking competition law. The government watchdog said between 2015 and 2017, when the cost of the drug was falling, the three companies exchanged information about prices, the volumes they were supplying and Alissa's plans to enter the market, in order to reduce competition.

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)."

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.

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."