Pfizer Accused of Overcharging for Epilepsy Seizure Drug by UK Competition Watchdog -- Update
August 05 2021 - 8:00AM
Dow Jones News
By Ian Walker and Cecilia Butini
The U.K. Competition and Markets Authority said Thursday that it
has provisionally found that Pfizer Inc. broke competition law by
charging unfairly high prices for phenytoin sodium capsules, which
are used to treat epileptic seizures.
The regulator said that over a four-year period Pfizer charged
the U.K. National Health Service 780% to 1,600% more for the drug
than it had previously. The company then sold the drug to another
company--Flynn-- who sold it for between 2,300% and 2,600% more
than before. This was possible because the companies de-branded the
drug, which was known as Epanutin until September 2012, and, as a
consequence, the treatment wasn't subject to price regulation in
the same way as branded drugs, according to the authority.
"As Pfizer and Flynn were the dominant suppliers of the drug in
the U.K., the NHS had no choice but to pay unfairly high prices for
this vital medicine," the CMA said, explaining that the NHS went
from spending 2 million pounds ($2.8 million) a year for the drug
in 2012 to about GBP50 million in 2013.
The regulator said that both Pfizer and Flynn have the
opportunity to respond to its provisional findings and that it will
consider their representations before making a final decision on
whether they broke the law.
The case started in 2016, when the companies were first fined by
the CMA for breaking competition law. After a series of legal steps
and appeals from the companies, the investigation was reopened in
June 2020, according to the CMA.
Pfizer said in a statement to The Wall Street Journal that it
continues to cooperate fully with the CMA's continuing
investigation. It added that the sustainable supply of products to
U.K. patients was at the heart of its decision to divest the
product in 2012.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 05, 2021 07:49 ET (11:49 GMT)
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