Pharma firms breach UK competition law over supply of anti-nausea drug

Four pharmaceutical companies broke the law by not agreeing to compete in the supply of an anti-nausea drug in the UK, according to the Competition and Markets Authority (CMA).

The CMA found that Alliance, Focus, Lexon and Medreich agreed not to compete for the supply of a prescription only drug to treat nausea and dizziness between June 2013 and July 2018.

In 2013, the NHS paid £6.49 for a pack of 50 tablets for the drug Prochlorperazine. However, between December 2013 and December 2017, the price rose by around 700% to £51.68. This resulted in the NHS paying around £7.5 million per year for the drug, even though the number packs dispensed fell.

In its provisional findings, the CMA found that Lexon and Medreich were paid a share of Focus’ profits to not compete for the supply of Prochlorperazine in the UK.

More so, it found that Alliance, Focus, Lexon and Medreich entered into an agreement in which Alliance supplied Prochlorperazine exclusively to Focus. Lexon received a share of the profits Focus earned on sales of Prochlorperazine and also shared these payments with Medreich.

Before entering the agreement, it’s thought that Lexon and Medreich had been taking steps to launch their jointly developed Prochlorperazine. And although Medreich had obtained a licence to supply the drug in January 2014, it did supply the product until November 2017.

The result is that the agreements could drive up higher prices for the NHS, according to the CMA.

Ann Pope, CMA senior director of Antitrust, said: “Agreements where a company pays a rival not to enter the market can lead to higher prices and deprive the NHS of huge savings that often result from competition between drug suppliers.

“The NHS should not be denied the opportunity of benefitting from an increased choice of suppliers, or lower prices, for important medicine.”

This is the CMA’s provisional finding and the companies now have the chance to make representations to the CMA before it reaches a final decision.