{"id":728,"date":"2018-02-02T12:04:48","date_gmt":"2018-02-02T12:04:48","guid":{"rendered":"https:\/\/www.competitionlawyers.co.uk\/blog\/?p=728"},"modified":"2018-02-02T12:04:48","modified_gmt":"2018-02-02T12:04:48","slug":"liothyronine-tablets-investigation-alleged-excessive-unfair-pricing","status":"publish","type":"post","link":"https:\/\/www.competitionlawyers.co.uk\/blog\/liothyronine-tablets-investigation-alleged-excessive-unfair-pricing","title":{"rendered":"CMA investigating pharmaceutical sector for alleged excessive and unfair pricing over liothyronine tablets"},"content":{"rendered":"

After a year of making its preliminary probes, the Competition and Markets Authority (CMA) has decided that there are substantive grounds and evidence to continue investigations into the pharmaceutical sector for allegedly charging excessive and unfair prices for liothyronine tablets<\/strong>.<\/p>\n

Liothyronine tablets are used to treat hypothyroidism. Without enough thyroid hormones, our bodies’ metabolism slows down, making us feel tired, depressed and cold, all the while putting the pounds on. Liothyronine isn’t the main drug used to treat hypothyroidism but a lot of people are not suited to the primary drug and can only take liothyronine.<\/p>\n

The suspected players in the market may be distorting competition<\/em> for the thyroid hormone drugs
\n
\nPharmaceutical companies often focus on mass producing limited types of drugs. In specialising in a small number of medicines, they can easily develop the cheapest and fastest way to make the drug. <\/p>\n

Other pharmaceutical companies may then focus on other drugs, and do the same thing. <\/p>\n

They may also make the same drugs as the first one if they also find a way to do it just as cheaply and quickly. However, there are companies that end up having a dominance over a drug<\/strong> because they are the only ones making it and supplying it in the required quantity.<\/p>\n

In this instance, the CMA suspects that Concordia has abused its position as a major Liothyronine producer and is taking advantage of its consumers by overcharging<\/strong> them. On 21st<\/sup> November 2017, the CMA issued a statement of objections, stating its allegations that Concordia has breached U.K. and EU competition rules by charging excessive and unfair prices in supplying the thyroid drug to the NHS<\/strong>.<\/p>\n

Our National Health Service is funded by U.K taxpayer’s money to pay for medicines and treatment. One of these drugs is Liothyronine, and the NHS buys the thyroid drug from the pharmaceutical company, Concordia. The CMA alleges that Concordia has taken this opportunity to take advantage of the NHS’ reliance on the essential drug and spiked its costs just because it knows the NHS will have no choice but to pay<\/strong>.<\/p>\n

Back in 2006, the NHS spent \u00a3600,000 on liothyronine, yet just a decade later in 2016, the NHS spent over \u00a334 million on it. <\/p>\n

Before 2007, each pack cost \u00a34.46. In 2007, the drug was de-branded, meaning any pharmaceutical company could make the generic version of it (like paracetamol). Somehow after that, the cost per pack inflated to \u00a3258.19; a shocking 6,000% increase<\/strong>. <\/p>\n

The CMA also noted that the costs to the manufacturer in producing the drug remained “broadly stable” during that time, so it wasn’t like they could justify the price hike because it cost them more to make it.<\/p>\n

CMA Chief Executive, Andrea Coscelli said:<\/p>\n

“Pharmaceutical companies which abuse their position and overcharge for drugs are forcing the NHS – and the UK taxpayer – to pay over the odds for important medical treatments.”<\/em><\/strong><\/p><\/blockquote>\n

She formally stated on behalf of the CMA that the authority, “allege that Concordia used its market dominance in the supply of liothyronine tablets to do exactly that.”<\/p>\n","protected":false},"excerpt":{"rendered":"

After a year of making its preliminary probes, the Competition and Markets Authority (CMA) has decided that there are substantive grounds and evidence to continue investigations into the pharmaceutical sector for allegedly charging excessive and unfair prices for liothyronine tablets. Liothyronine tablets are used to treat hypothyroidism. Without enough thyroid hormones, our bodies’ metabolism slows … Continue reading CMA investigating pharmaceutical sector for alleged excessive and unfair pricing over liothyronine tablets<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":735,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[2,9],"class_list":["post-728","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investigations","tag-cma","tag-price-fixing"],"yoast_head":"\nLiothyronine Tablets Investigation For Alleged Excessive And Unfair 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