Five drugs firms and private equity groups have been fined more than £35 million by the UK’s competition watchdog for colluding to restrict the supply of an anti-nausea tablet, driving up NHS prices dramatically.
The Competition and Markets Authority (CMA) said drugs firms Alliance Pharmaceuticals, Lexon, Medreich and former and current private owners of Focus, Advanz and Cinven, had broken the law by striking an illegal arrangement over the supply of Prochlorperazine – an important treatment for nausea, dizziness and migraines.
The NHS saw the price of the drug surge by 700% from £6.49 per pack of 50 tablets to £51.68 between 2013 and 2017, according to the CMA.
This saw annual costs to the NHS for the drug soar from around £2.7 million to about £7.5 million, even though the number of packs dispensed fell.
The CMA said Advanz, Cinven, and Lexon have all been issued fines in previous CMA pharmaceutical investigations, with penalties for Advanz and Cinven marking the first time a company has been fined by the watchdog in three separate investigations.
The CMA’s investigation found the firms colluded to ensure a competitor was paid not to launch a product, and which enabled price increases.
Andrea Coscelli, chief executive of the CMA, said: “The size of the fines reflects the seriousness of this breach.
“These firms conspired to stifle competition in the supply of this important medication, so that the NHS – the main buyer of the drugs – lost the opportunity for increased choice and lower prices.
“While the arrangement was in place, the price increased significantly for a drug that people rely on to manage debilitating nausea, dizziness and migraines.
“All firms should know that we will not hesitate to take action like this against any businesses that collude at the expense of the NHS.”
