Consumer watchdog the Competition and Markets Authority (CMA) has provisionally found that drug company Concordia abused its dominant position to overcharge the NHS by millions for an essential thyroid drug.
In an investigation into pricing, the CMA found the NHS spent more than £34 million (US$45 million) last year on liothyronine tablets, an increase from around £600,000 (US$794,562) in 2006. The amount Concordia charged per pack rose from around £4.45 (US$5.89) before it was de-branded in 2007, to £258.19 (US$341.89) in July this year. This increase of almost 6,000% came despite the fact that production costs remained “broadly stable,” the CMA found.
“Pharmaceutical companies which abuse their position and overcharge for drugs are forcing the NHS — and the UK taxpayer — to pay over the odds for important medical treatments,” said Andrea Coscelli, CMA chief executive.
“We allege that Concordia used its market dominance in the supply of liothyronine tablets to do exactly that,” he said.
The CMA’s findings are provisional, pending further investigation, and the watchdog has not yet ruled Concordia breached competition law.
Full Content: Financial Times
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
