After a pharmaceutical company increased the price of certain thyroid drugs by more than 6,000%, the UK competition regulator imposed a fine of millions of pounds.
After investigation competition And the Marketing Authority (CMA) found that from 2009 to 2017, Advanz charged “excessive and unfair prices” for the supply of liothyronine tablets used to treat thyroid hormone deficiency.
The regulator said that this is because these drugs face “limited or no competition”, which means that it can sustain repeated price increases, and this is “not driven by any meaningful innovation or investment.”
It found that the price increase strategy that began in 2007 resulted in an overall price increase of more than 6,000%. It added that during this period, production prices also did not rise significantly.
Eventually, the drug was placed in National Health Service The July 2015 “descent list” means that patients either stop their current treatment or start paying for the medicine themselves.
By 2009, the price of a tablet bag was 20 pounds. The CMA stated that this price increased to £248 in 2017-a 6,000% increase from the 2007 price.
The regulator imposed fines totaling more than 100 million pounds on the companies involved during the relevant period.
Advanz was fined 40.9 million pounds, HgCapital was fined 8.6 million pounds, Xin Wen 51.9 million pounds. The latter two companies are private equity companies, formerly the owners of these companies. They are now part of Advanz.
CMA Chief Executive Andrea Coscelli stated that the company’s actions to increase prices “inflicted huge costs on the NHS and ultimately British taxpayers.
“That’s not all-it also means that people who suffer from depression and extreme fatigue due to thyroid disease are told that they cannot continue to receive the most effective treatment due to rising prices,” he added. .
“Advanz’s strategy exploited a loophole to make it more profitable. This fine of more than £100 million, and our work in the pharmaceutical industry so far, sends a clear message that violations of the law will bring serious consequences. as a result of.”
An Advanz spokesperson said: “Advanz Pharma takes competition law very seriously. We totally disagree with the CMA’s decision on the pricing of liothyronine tablets, which will be attractive.
“At all times, Advanz Pharma acts for the benefit of patients and makes significant investments to keep the drug on the market in compliance with the specifications required by the Medicines and Healthcare Products Regulatory Agency (MHRA).
“In addition, any price increase of liothyronine will be notified in advance and agreed in writing in advance, Health department And social care. “
