Brief update in the hypothyroidism tablets competition case
First published by Author on February 28, 2019 in the following categories: Investigations Price Hikes Pricing and tagged with cma | competition law | investigations | market abuse | price fixing | pricing
A brief update has been issued in the hypothyroidism tablets competition case surrounding alleged overcharging of liothyronine medication.
The liothyronine tablets are used to treat people lacking in thyroid hormones, which can lead to tiredness, slow metabolism, depression and other ailments. The CMA (Competition and Markets Authority) spent a great deal of time in 2017 gathering evidence for the case. In November 2017, a statement of objections was formally issued.
Last month, an updated statement of objections was issued by the CMA in this incredibly important investigation.
About the hypothyroidism tablets competition case
The hypothyroidism tablets competition case is about the NHS being allegedly overcharged for medication.
In 2006, the cost of the liothyronine to the NHS was reported to be £600,000. In 2016, the costs had risen to a staggering £34m. Back in 2007 when the drug was de-branded, which allowed pharmaceutical companies to make generic versions, the cost per packet reportedly rose from £4.46 to £258.19.
That was a 6,000% increase!
The company providing these hypothyroidism tablets to the UK – Concordia – stand accused of abusing their dominant position and overcharging the drug to the NHS. In the latest updated statement of objections, the CMA said that they are:
“… provisionally finding that Advanz Pharma (formerly Concordia) breached UK and EU competition law from at least 1 January 2009 to at least 31 July 2017 by charging excessive and unfair prices for Liothyronine tablets in the UK.”
They also noted that:
“Between January 2009 and July 2017, the price paid by the NHS for liothyronine tablets rose from £15.15 to £258.19, a rise of 1,605%, while production costs remained broadly stable. During that period, Advanz was the only supplier of liothyronine tablets in the UK.”
Why the hypothyroidism tablets competition case is so important
The hypothyroidism tablets competition case is incredibly important because it’s taxpayers’ money that’s funding these vital drugs.
Our NHS is already stretched enough when it comes to resources. Any form of overcharging is wrong, but when it comes to public money and our vital public health service, it’s arguably even worse.
If the final determinations show that a pharmaceutical giant has abused its position and put profits first, there should be significant punishments issued.
We will continue to keep a very close eye on this one.