The Competition and Markets Authority (CMA) has announced a new ruling from the EU Court of Justice, in relation to its case that drug companies supplying antidepressant paroxetine broke the law.
The ruling harks back to the CMA’s 2016 case that found GlaxoSmithKline had agreed to make payments totalling over £50 million to other generic suppliers of paroxetine. These payments were aimed at delaying the potential entry of these competitors into the UK market.
The new ruling has “clarified a number of important questions” and will help competition authorities, including the CMA, in their work to tackle such harmful behaviour by pharmaceutical companies. As a result, the CMA imposed fines of £45 million on the companies involved and the case will now go back to the Competition Appeals Tribunal (CAT) for a final judgment on the appeals.
“This case shows our ongoing determination to take action against illegal behaviour by drug companies designed to stifle competition at the expense of the NHS. This has been a lengthy process, and we look forward to the CAT’s final judgment,” commented Andrea Coscelli, chief executive at the CMA.
He continued, “Cracking down on harmful behaviour, such as pay-for-delay agreements, is essential to protect the NHS – and so UK taxpayers – from paying more than they should for an important medicine.”
Last week the CMA also furthered its case that three drug firms – Aspen, Amilco and Tiofarma – signed an illegal agreement that resulted in significant price hikes for an essential medicine, after Tiofarma admitted that it took part in an agreement that resulted in the price hikes, following on from Aspen’s confession.
As it stands the CMA currently has other, unrelated investigations open in relation to seven other pharmaceutical drugs.
